Software company Bigtincan (ASX: BTH) is expecting to receive a new indicative acquisition offer from San Francisco private equity firm Vector Capital.
Bigtincan offers artificial intelligence (AI)-powered sales enablement software.
Vector specialises in investing in technology sector companies which require turnaround strategies, such as Canadian small business software company Corel which it 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.
Bigtincan reported on 12 June that Vector had formally withdrawn a confidential, non-binding, incomplete and indicative offer that it had reported the previous day.
Bigtincan said Vector had requested ongoing engagement “with a view to a new offer that could be submitted based on those engagements”.
Bigtincan noted there was no certainty any transaction would eventuate and said it remained committed to executing its strategic plan and maximising shareholder value.
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 was 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. Bigtincan has a current market capitalisation of $61.62 million. The company is currently in the process of raising $10.5 million through an issue of 100.3 million new shares. In a separate 12 June announcement, the company said it had raised around $10 million, at 10 cents a share, in the accelerated institutional component of the offer.
The company’s shares closed at 10 cents on 12 June following the announcement of the withdrawal of Vector’s offer.
Bigtincan reported a loss of $27.38 million for the 2023 financial year, up from a loss of $21.15 million the prior year despite revenue increasing from $108.03 million to $1.22.39 million.
Shares in Bigtincan peaked at close to $1.50 in August 2021 but have since trended down.
Image: Bigtincan co-founder and co-chief executive David Keane.