The OneVue Holdings Ltd (ASX: OVH) share price is flying higher this morning, up by as much as 60.42% on the back of a takeover deal by Iress Ltd (ASX: IRE).
OneVue is a provider of superannuation, funds management and investment solutions, supporting financial services by providing technology and service solutions to its clients. It competes with larger ASX players Netwealth Group Ltd (ASX: NWL) and Praemium Ltd (ASX: PPS) in the independent specialist platform space.
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Why the OneVue share price is skyrocketing
This morning, OneVue announced it has entered into a binding scheme implementation agreement with Iress at 40 cents cash per share. This represents a 66.7% premium to OneVue's last closing price of 24 cents on Thursday.
The agreement remains subject to certain conditions, including an independent expert concluding that the scheme is in the best interest of OneVue shareholders, an ACCC statement that it does not oppose the scheme, and approval by the court.
The OneVue board unanimously recommends that shareholders vote in favour of the scheme if these conditions are satisfied.
Subject to ASIC registration and court approval, the scheme booklet is expected to be distributed to OneVue shareholders in early August 2020. Following this, shareholders will meet to vote on the scheme in early September 2020.
Commenting on the takeover, OneVue managing director Connie Mckeage said:
"We are pleased to have entered into an agreement with Iress to acquire OneVue. The offer represents a significant premium to our current share price and a full cash offer provides compelling certainty for our shareholders. Iress is a company we have significant respect for and we know they are committed to delivering high levels of service to our clients and are looking forward to working more closely alongside our clients and partners."
Connie Mckeage will play an important role during the transition period and will consult Iress on growth, strategy, and clients after completion.
Why Iress is acquiring OneVue
Explaining the strategic rationale behind the acquisition, Iress chief executive Andrew Walsh said:
"The combination of OneVue's strength and position in administration of managed funds, superannuation, and investments, with Iress' strength in software and data will drive innovation through technology. This includes the development of software and services that brings advice and investments closer together, resulting in greater efficiency and productivity for professional advisers and businesses in Australia."
Iress also announced an equity raising this morning to strengthen its balance sheet and partly fund the $107 million OneVue acquisition.
This will consist of a fully underwritten placement of $150 million to institutional and sophisticated investors, as well as a non-underwritten share purchase plan to raise approximately $20 million. The placement will be conducted at $10.42 per share, representing a 7% discount to Iress' last closing price of $11.21 on Friday.
