Nearmap (NEA) reveals takeover bid, shares pop higher
NEA +24.83%: the advanced mapping company revealed a takeover bid was in play from tech private equity fund Thoma Bravo. The US based $US100b fund put forward a $2.10/sh offer in early July, which was an 83% premium to the share price at the time. Shares have since rebounded, but the bid still represented a 39% premium to Friday’s close. Thoma Bravo will get first rights in the deal, currently working on exclusive due diligence to firm up the price and any funding needs, though other potential bidders are rumoured to be circling. The company’s performance has also rebounded. Annualized Contract Value (ACV) is expected to come in at $159.9m for FY22, at the top end of guidance. Cash burn has also decreased with $93.7m of cash expected to be on the balance sheet at the end of the period, running through recently raised capital at a slower rate than expected. There was 6% of the register short sold as of late last week, short covering assisting the squeeze to a tight ~10% discount to the offer price today.
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