Private equity firm Thoma Bravo is set to take over Australian aerial imagery company Nearmap Ltd. for $728.5 million, the company said.
The offer represented a premium of close to 39% over Nearmap’s stock closing price the day before the deal was disclosed.
"The Board believes the proposed all-cash offer represents attractive value and provides an immediate opportunity for shareholders to realize certain value at a significant premium to the market," Nearmap Chairman Peter James told Reuters.
Recently, U.S. private equity firms have sought out discounted purchases in Australia. Nearmap’s shares have lost more than half their value since 2019, making it a desirable purchase for Thoma Bravo, which has acquired cybersecurity firms with gusto of late. Earlier this month, the company, which has assets under management totaling more than $114 billion, closed a $2.4 billion deal for Ping Identity.
Nearmap leadership acknowledged the possibility that the company could do well if it continued as a public company, but believes the upsides of being acquired and taken private outweigh the downsides.
"While in the long term there remains potential future growth trajectory, this has to be balanced with the business and market risks that Nearmap shareholders face remaining as a publicly listed independent company," James said.
Nearmap’s products are used in surveillance, conducting aerial surveys of large urban areas in Australia, New Zealand, the U.S., and Canada. The company is currently engaged in patent infringement litigation with EagleView, a U.S. competitor.
Nearmap's board has unanimously recommended that its shareholders vote in favor of the deal when the time comes for a vote, which is expected in November.