Los Angeles-based K1 Investment Management is to acquire Australian software provider ELMO Software in an all-cash deal worth $319 million, according to a report by Reuters.
Los Angeles-based K1 Investment Management is to acquire Australian software provider ELMO Software in an all-cash deal worth $319 million, according to a report by Reuters.
The US-based B2B software investment firm has agreed to pay AUD4.85 per share in cash for the cloud-based software solutions business that operates in Australia, New Zealand and the United Kingdom.
The offer represents a 100.4% premium to ELMO Software’s closing share price on 12 Oct, the day before new of K1’s interest broke. The company’s stock has subsequently risen by 41% wiping out a 27% loss seen so far in 2022 ahead of the takeover.
The bid has recommended to shareholders by ELMO’s independent board committee, with ELMO’s chief executive Danny Lessem, who owns 11% of the company’s stock, saying he will vote in favour of the deal.
