San Francisco private equity firm Vector Capital has made a revised non-binding acquisition proposal for ASX-listed software company Bigtincan Holdings (ASX: BTH).
Vector has increased its earlier proposed offer from 19 cents to 20 cents a share. The offer values the company at $164 million.
Announcing the offer on 17 September, Bigtincan said that, earlier this month, Vector had engaged with a number of shareholders and the company.
Bigtincan said Vector’s non-binding proposal included the statement: “Having reviewed the publicly available FY2024 year-end financial results and now having identified lenders willing and able to provide Vector with the necessary debt financing, Vector has received investment committee approval to, and would be prepared to, consummate a take-private transaction for BTH at an increased price of $A0.20 per share. Our offer is unconditional, does not have a financing contingency and is subject only to legal due diligence and entering into binding long-form documents.”
Bigtincan said its board would evaluate the revised proposal with input from external advisers, including as to value and sources of funding, prior to engaging with Vector.
The announcement sent Bigtincan’s shares up 33% from 12 cents to 16 cents.
Bigtincan reported in June that it had rejected a revised 19-cents-a-share offer from Vector.
Bigtincan offers artificial intelligence (AI) powered sales enablement software.
Vector specialises in investing in technology sector companies which require turnaround strategies. An example is Canadian small business software producer Corel which Vector has taken private twice.
Vector was also the sponsor of special purpose acquisition company (SPAC) Vector Acquisition Corp (Nasdaq: VACQ) which acquired and took public New Zealand-founded Rocket Lab in 2021.
In late 2022, SQN Investors, a California-based long/short equities investment adviser and private equity fund manager made an 80-cents-a-share $442 million unsolicited bid for Bigtincan which the company rejected.
Bigtincan was founded in Sydney in 2011 and was listed on the ASX in March 2017. The company now has its headquarters in Boston, Massachusetts.
Shares in Bigtincan peaked at nearly $1.50 in August 2021 but then trended down until they hit 10 cents in late June this year.
Bigtincan reported earnings before interest tax depreciation and amortisation of $11.3 million for financial year 2024 compared with a loss of $4.9 million for financial year 2023. This was, however, on reduced revenue of $117.1 million compared with $123.1 million a year earlier.
Image: David Keane, chief executive and co-founder of Bigtincan.