Pushpay share price soars 23% following takeover approach

Outside interest gives Pushpay wings…

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Key points
  • The Pushpay share price is up 23% on the back of interest in acquiring the company
  • At this stage, expressions of interest have been made by third parties and are non-binding
  • Pushpay also reaffirms its full-year guidance of US$61.5 million to US$63.5 million in underlying EBITDAFI

The Pushpay Holdings Ltd (ASX: PPH) share price is hot property on Tuesday. This follows the company revealing it has received expressions of interest for its acquisition.

At the time of writing, shares in the donor management and church services company are up 23.44% to $1.185. However, Pushpay shares on the ASX are still down almost 30% over the last year amid a sustained selloff in tech stocks.

A priest in robes and collar smiles widely and holds up his forefingers and thumbs in circular OK signals.

Image source: Getty Images

What's going on with the Pushpay share price?

As a new week kicks off on the ASX, it looks like Pushpay shares are starting out on a positive note. The latest announcement has enticed the market to take another look at the embattled tech company.

According to the update, Pushpay has been on the receiving end of unsolicited, non-binding, and conditional expressions of interest. Additionally, the filing states these approaches are from third parties seeking to acquire the church software provider.

In response, Pushpay has appointed investment bank Goldman Sachs to assist with the facilitation. However, the company made it clear that the interest has no certainty of producing a final transaction.

What else?

Another dose of news potentially exciting the Pushpay share price this morning is the reaffirmation of the company's full-year guidance. This concerns the full year ending on 31 March 2022.

As stated in the update, Pushpay is still expecting the previously guided range for underlying EBITDAFI of US$61.5 million to US$63.5 million. Furthermore, when the costs involved with its Catholic initiative are removed, underlying EBITDAFI is expected to be US$63.5 million to US$65.5 million.

The Pushpay share price is still around 2% below where it was coming into 2022.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended PUSHPAY FPO NZX. The Motley Fool Australia owns and has recommended PUSHPAY FPO NZX. 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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