The Bravura Solutions Ltd (ASX: BVS) share price is up 1.2% to $5.31 today, but that's nothing compared to the 21% rise for GBST Holdings Limited (ASX: GBT) after Bravura made a takeover offer for GBST.
According to Bravura's announcement it's prepared to pay $2.50 per share for GBST less the amount of any special dividend that could be up to 35 cents per share.
As an alternative to the cash offer Bravura has also offered 0.4095 Bravura shares for every GBST share and a 35 cents per share cash payment less the payment amount of any final special dividend.
Yesterday GBST shares closed at $1.975, but have shot higher to $2.40 today with investors seemingly confident this deal has a good chance getting over the line unlike Wynn Resorts' recent offer for Crown Resorts Limited (ASX: CWN) for example.
Interestingly the fortunes of Bravura and GBST have veered in opposite directions over the last couple of years, with GBST's valuation sinking as it struggled to win clients across a couple of its platforms, while Bravura has gone from strength to strength.
Bravura claims its takeover will ease the burden on GBST for it to invest on upgrading its Composer software and other platforms, while other cost savings could also likely be found.
It wants an 8 week window to conduct full due diligence on GBST that will likely be hanging out for a better offer before accepting a deal.
