Credit: Dreamstime
Software-as-a-service provider ReadyTech has received a $514 million acquisition offer from Pacific Equity Partners and its affiliates.
The Australian PE firm has tabled $4.50 per share, over a dollar more than its closing trading price as of 31 October.
ReadyTech, which services the education and payroll sector, said it had engaged in due diligence, which include discussions with Pemba Capital Partners, which owns 32 per cent of ReadyTech’s shares.
An independent board has been established to consider the proposal while Jefferies has been appointed to advise on finance. Shareholders have been told that discussions were ongoing, and no agreement has been reached between the parties in relation to the value, structure or terms of the transaction.
ReadyTech was founded more than 20 years ago, originally known as JobReady and launched its first software product in 1999. It now has more than 150 staff, with a majority of its workforce focused on product development.
It was listed on the Australian Securities Exchange in 2019 with an initial public offering of $1.51 per share, raising about $50 million in the process.
In 2020, it spent $72 million on Melbourne-headquartered government software specialist Open Office.
This year, the company also bought IT Vision in an effort to boost its position in the local government sector. The acquisition saw ReadyTech add 190 local government customers with a majority located in Western Australia and South Australia.
