ASX 200 rises on Monday

The S&P/ASX 200 Index (ASX:XJO) went up today in a strong start to the week. Altium Limited (ASX:ALU) announced the sale of its TASKING unit.

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The S&P/ASX 200 Index (ASX: XJO) rose by around 0.30% today to 6,660 points.

Here are some of the highlights from the ASX:

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Altium Limited (ASX: ALU)

Altium, the electronic design software company, announced it is going to sell its TASKING business to FSN Capital for US$100 million up front and another US$10 million conditional upon achieving revenue targets in FY21 after the sale.

Mr Aram Mirkazemi, the CEO of Altium, said: "The strategic divestment of TASKING combined with our recent organisational changes and hard pivot to the cloud marks an inflection point for Altium in its pursuit of industry transformation. While TASKING is a great business, it does not play a central role in our design to realisation strategy for the electronics industry, which is being delivered through our new cloud platform Altium 365. The divestment of TASKING will free up organisational capacity and allow Altium leadership to focus on our main game, which is to expand Altium 365 and accelerate the adoption."

Altium explained that the transaction will have a one-off positive impact to earnings per hare (EPS) in the 2021 financial year which reflects the profit on the sale of the business.

The FY21 first half result will include TASKING as the transaction will close in the second half.

Management stated that the first half performance remains solid, however the effect of the transaction combined with the ongoing COVID-19 lockdowns in the US will have a "marked" impact on its usual revenue split of 45% in the first half and 55% in the second half. However, Altium remains confident about achieving full year guidance when adjusted for the sale of TASKING because its revenue and earnings won't be included in the second half of FY21.

IOOF Holdings Limited (ASX: IFL)

The diversified financials business welcomed the ACCC's decision not to oppose IOOF's acquisition of MLC from National Australia Bank Ltd (ASX: NAB).

IOOF CEO Renato Mota said: "The ACCC decision is a key milestone in achieving approvals to complete the MLC acquisition. MLC is a highly complementary wealth management business which is a natural fit with IOOF. It presents a unique opportunity to create Australia's leading wealth manager along with significant benefits through simplification and transformation for clients, members and shareholders.

"Combining IOOF and MLC creates a common purpose and culture of community spirit and supporting people to achieve their financial goals. This combination brings wide-ranging capabilities, technical expertise to enable improved choice, accessibility and client outcomes."

The ACCC's review indicated that, after the acquisition, IOOF would be competing with and constrained by several other large firms along with a number of smaller firms for the supply of retail platforms.

IOOF isn't expecting any change to its estimated completion date of before 30 June 2021.

New Zealand travel bubble

New Zealand Prime Minister Jacinda Ardern announced today that the country will let Australians travel quarantine-free into the country by the end of March. This will still require the Australian government to allow it to happen and for COVID-19 case number to remain low.

New Zealanders are currently able to travel to Australia without quarantining.

There was a mixed reaction to this news. The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price went up 0.3%. However, the Flight Centre Travel Group Ltd (ASX: FLT) share price fell around 2%, the Webjet Limited (ASX: WEB) share price dropped 1.1%, the Qantas Airways Limited (ASX: QAN) share price fell 0.6%, the Serko Limited (ASX: SKO) share price rose 1% and the Helloworld Travel Ltd (ASX: HLO) share price fell 1.5%.

Tristan Harrison owns shares of Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Altium. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Serko Ltd. The Motley Fool Australia owns shares of and has recommended Helloworld Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Serko Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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