Pacific Equity Partners Pulls Out ReadyTech Build For Now

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ReadyTech, an Australian service-as-a-service provider, was offered a conditional, non-binding indicative offer from Australia-based private markets fund manager Pacific Equity Partners (PEP) last month. The companies are working together on an alternative proposal.

Early in November, PEP offered to buy ReadyTech for $481.4 million as it was interested in getting into the Australian technology sector. The initial offer was updated, where PEP will allow its shareholders to choose if they want their shares to be in cash, claims, or a mix of both.

The initial offer of PEP was pushed back by ReadyTech’s second-largest investor, Microequities Asset Management. But according to the independent board committee of ReadyTech, they are in discussion with PEP for alternative offers, keeping the shareholders’ interest in wishing to engage with PEP on a non-exclusive basis.

However, PEP pulled out of its proposed takeover just recently. The equity group says the withdrawal was temporary as they are still exploring alternative proposals for the software company.

Nick Nichols, a senior journalist in Business News Australia, reported, “That wasn’t enough to assure shareholders who marked ReadyTech shares more than 8 per cent lower at the open to $3.60, well below Pacific Equity’s original proposal of $4.50 per share.”

In an official statement, the software company disclosed that “ReadyTech has not yet received details of the alternative proposal. The discussions with Pacific Equity Partners are ongoing, and no agreement has yet been reached between the parties.”

Nichols added that the biggest challenge of PEP was ReadyTech’s long-time shareholder, Pemba Capital Partners. Pemba controls 32.01 per cent of ReadyTech. PEP secured ASIC approval to work with Pemba; however, both companies have yet to agree.

ReadyTech’s board noted that they plan on finalising their discussions for an alternative proposal with PEP and want to accomplish this quickly. However, they added that it is still determined whether they would reach a formal offer during this discussion.

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