NTO -2.81%: returned to trading today after successfully completing a capital raise to fund an acquisition. NTO is raising $140m at $3.43/sh through a placement and a 1 for 11.4 entitlement offer, a 10.7% discount to Tuesday’s close. The money will be put towards a $US81m acquisition of Connective, a European e-signature business. It’s an on message acquisition for Nitro, management have been open about looking to improve capabilities through an acquisition. Connective’s technology is capable of handling far more complex signature needs which will be integrated into their existing product. They have paid up a bit for it though at around 13x Annual Recurring Revenue (ARR), and there will be some work to push the tech across borders but the strategy is positive.
MM is long NTO in the Emerging Companies Portfolio
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