Aconex Ltd trades flat as $1.6 billion Oracle takeover looms

Shares in takeover target Aconex Ltd (ASX: ACX) traded flat today just beneath the $7.80 per share cash takeover offer from US tech giant Oracle Inc. as the company handed in almost certainly its last set of results as an ASX-listed business.

For the record, Aconex posted a net loss of $2.95 million on revenues of $86.8 million for the six-month period ending December 31 2017. The net loss was an improvement on the $3.5 million in losses recorded in the prior corresponding half.

Total revenues for the year were up 13% or 14% on a constant currency basis, with EBITDA (operating income) from core operations clocking in 23% higher at $9.1 million.

As at December 31 2017 the company had cash in hand of $26.1 million.

The business is globally diversified with a potentially long growth runway thanks to the large addressable markets in which it operates. As a software-as-a-service business it also boasts some attractive characteristics in that it is capital light, can grow revenues faster than costs, and should generate recurring revenues.

Given its most recent set of financials I don’t expect there’ll be too many shareholders voting against Oracle’s $1.6 billion takeover proposal come the March 23 vote scheduled to approve the takeover deal. Fortunately for Aconex shareholders, A$1.6 billion is small change for the US tech giant, with the stock currently changing hands for $7.74, marginally below the $7.80 takeover price.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended ACONEX FPO.

You can find Tom on Twitter @tommyr345

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.