Australian technology companies made waves on the ASX this week, with one share in particular shooting up by an astonishing 75% as investors anticipate news of an impending takeover.
News Corporation’s REA Group has indicated its intention to acquire the tech company, and investors were quick to respond to the suggestion. The company’s share price surged in response to the news, leaving the entire sector elated.
The Australian tech sector has been exploding in recent months, thanks to an influx of foreign investors and venture capital firms that are quickly snapping up promising companies. The sector is proving highly competitive, with major multinationals and start-ups vying to grab the best startups in the country.
But it’s not just the big players that have been getting in on the action. Many smaller tech stocks have also seen a surge in their share prices, in response to the takeover bid.
The company in question is yet to be named, but it appears that its business model and potential make it an attractive proposition for investors. It’s also a great sign for the entire Australian tech sector, which is enjoying a period of immense growth.
It’s likely that this isn’t the last we’ll see of tech sector takeovers. With so much potential in the local industry, many of the major players are sure to be looking for new acquisition opportunities.
This is just one of many examples of how the Australian technology sector is thriving, and as investors increasingly see the potential in the sector, we’re likely to see more transactions like this one in the future.
Image supply: Getty Visuals
The S&P/ASX All Technological innovation Index (ASX: XTX) is down .81% right now, but one ASX tech share is bucking the trend.
The IntelliHR Ltd (ASX: IHR) share rate soared soared 75% in before trade to 11 cents in advance of retreating slightly. The company’s share price is now soaring 67% to 10.5 cents.
Let us choose a glimpse at why this ASX tech share is storming greater right now.
Probable takeover
Traders are acquiring up Intellihr shares currently amid information of a prospective takeover.
Intellihr has entered a Plan Implementation Deed for Humanforce Keeping Pty Ltd to takeover all of the company’s shares. Humanforce is a subsidiary of funds suggested by private equity firm Accel-KKR.
Under the potential takeover, Intellihr shareholders would get 11 cents per share. This represents a 75% top quality on Monday’s closing price of 6.3 cents.
Having said that, with Intellihr shares now up 67% to 10.5 cents, this now signifies just a 5% upside on the present-day share cost at the time of composing.
Intellihr’s board thinks the offer you “provides shareholders with certainty of price today” for the opportunity of the business. Commenting on the information, Intellihr chair and CEO Matt Donovan reported:
The board thinks the proposed all-dollars supply signifies interesting worth
and supplies an speedy opportunity for shareholders to realise certain value at a significant high quality to the market place.
Humanforce is a service provider of workforce administration and payroll solutions for deskless workforces. Consumers involve Flight Centre, Secure Parking, Accore and Delaware North. Commenting on today’s news, Humanforce CEO Clayton Pyne added:
There is a persuasive synergy involving IHR and Humanforce, who share the eyesight of enabling businesses to generate automatic compliance, price optimisation and engagement by revolutionising the personnel expertise, by clever, personnel-centred technology.
IntelliHr share cost snapshot
The IntelliHr share rate has descended just about 38% in the final 12 months.
This ASX tech share has a market capitalisation of about $36 million based mostly on the present share cost.
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