Although having only listed publicly on the ASX six months ago following a $26.5 million IPO, tech company thedocyard (ASX: TDY) is on the move again with a proposed merger with unlisted Ansarada to form a global leader in business services tech.
A proposed merger with Ansarada would require thedocyard to raise an additional $45 million in capital in order to consummate the merger, which will also need approval from existing shareholders.
Key rationale to the merger would be a clear pathway towards substantial recurring revenue for the merged entity due to complementary services offered by thedocyard’s workflow management and board management platforms, as well as Ansarada’s virtual data room and pathways platforms.
“I’m thrilled to announce this transaction today. Consistent with our recent acquisition of the Athena Board portal, thedocyard is focused on building out our stable of technologies that make corporate events such as transactions and board meetings more efficient and more secure,” said thedocyard Founder and CEO, Stuart Clout.
“With this transaction, our reach will be greater, our opportunity to solve more of our customers problems enhanced, and our vision to be the trusted technology partner to corporates, advisors and funds is accelerated.”
If the merger is consummated, the new Company would trade on the ASX with a market cap around $125 million, significantly higher than thedocyard’s current $27m. Together, the merged entity would then give access to an active customer base of more than 2,600 customers and 400,000 active users within leading companies, investment banks and advisory firms.
Established in 2005, Ansarada has grown to be a market leader in the Asia Pacific region offering workflow and virtual data room solutions which facilitate secure information flow. These services are then applied to deliver reporting and insights for decision making.
Under the merged entity, the Company’s enterprise value would be approximately $105m, representing 3.1x unaudited FY20 revenue with $20m cash retained for growth and working capital.
“The combination of Ansarada and thedocyard is truly great as our respective product solutions and customer bases are highly complementary, as is the vision and values we share.” said Ansarada Founder and CEO, Sam Riley.
“The combined technology and expertise of Ansarada and thedocyard will create an unrivalled SaaS platform for information governance and end-to-end management of corporate transactions.”
Under the executed Heads of Agreement between thedocyard and Ansarada, transaction documents are to be finalised within 3 weeks, shareholder approvals within 11 weeks and completion of the $45m capital raising within 15 weeks.
Morgans Corporate Limited and Moelis Australia have been appointed as Joint Lead Managers to the Capital Raising.
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