Nearmap Accepts $1 Billion Private Equity Offer
Nearmap has accepted a $1 billion takeover bid from a US private equity firm that invests in software and technology companies.
Thoma Bravo is offering to pay $2.10 per share in the Sydney-based aerial mapping company, a 67% premium to their six-month volume-weighted average price before the acquisition offer was made. made public last week.
As of 10:58 a.m. AEST, Nearmap shares rose 4.6% to $2.055.
“The board believes that the proposed all-cash offer represents attractive value and provides an immediate opportunity for shareholders to realize some value at a significant premium to the market,” said Nearmap Chairman Peter James.
The proposal is expected to be submitted to Nearmap shareholders in November. The Foreign Investment Review Board and US regulators must also give their approval.
“Beyond regulatory approvals…we believe this is essentially a done deal,” Macquarie Research said in a note to clients.
The transaction could be finalized at the end of November, Nearmap said.
Thoma Bravo has already done due diligence and the $114 billion private equity fund, one of the largest in the world, does not require financing.
Founded in Perth in 2008, Nearmap uses aircraft to frequently capture high quality 3D aerial imagery covering much of Australia and the United States of New Zealand.
The images are then made available through a subscription service to a wide range of customers.
“We believe Nearmap’s insights are increasingly mission-critical for enterprises and use cases are evolving rapidly, as evidenced by the company’s accelerated adoption with blue-chip customers in North America.” , said AJ Rohde, senior partner at Thoma Bravo.
“We look forward to working closely with (Nearmap CEO) Rob Newman and the highly innovative team at Nearmap to continue to evolve Nearmap into its next chapter as a private company.”