Aconex Ltd. said it received a buyout offer of A$1.56 billion ($1.2 billion), or A$7.80 in cash-per-share from Oracle Corp. on December 18. The offer sent the target’s share price up by 45 percent.
Aconex stated its directors pushed the offer forward and stakeholders will vote at a meeting in March 2018. The Australian firm specialized in web-based project management software which takes inputs from various teams. The technology has been implemented in different projects such as Panama Canal Extension.
“Oracle’s offer of A$7.80 per share represents a significant premium and a high degree of certainty of value to shareholders through the cash offer and limited conditionality,” said Adam Lewis, Chairman of Aconex in a statement.
In a letter to Aconex’s customers, Leigh Jasper, Co-Founder & Chief Executive Officer, said, “we expect that Oracle’s continued investment in Aconex will deliver more functionality and capabilities at a quicker pace, as well as provide better integration and alignment with Oracle’s other product offerings.”
The Australian firm underwent massive share price fluctuations since it was listed in IPO in 2014 at A$1.90. It rose just above A$8.50 in 2016. The share price increased by 45 percent after trading began on December 18, reaching just below A$7.80 cash-per-share offer.
Aconex, the firm which builds construction projects, said it is likely to be liable to pay Oracle Corp. about 1 percent of the equity value of the deal as a break-up fee. The conditions under which the fee would be paid have not specified.
Oracle said in a statement that the deal was estimated to close in the first half of 2018.