The Infomedia Limited (ASX: IFM) share price has started the week strongly.
In morning trade, the automotive industry software provider's shares are up 9% to $1.62.
Why is the Infomedia share price charging higher?
The Infomedia share price is rising this morning amid optimism that a bidding war to acquire the software company could be about to ensue. This follows news that a third bidder has tabled a takeover offer this morning.
According to the release, Infomedia has received a further conditional non-binding indicative proposal from Solera Holdings to acquire it for a price of $1.70 per share payable in cash.
Solera is a portfolio company of US based Vista Equity Partners, which is a technology focused investment firm.
The release notes that Solera's proposal is subject to a number of conditions. These include the completion of due diligence, final approvals, finalisation of financing arrangements, and entry into a scheme implementation deed.
How does this compare to other proposals?
Solera's offer is in line with the offer made by the TA Consortium and just short of the $1.75 per share offer from Battery Ventures.
The Infomedia board has carefully considered the three proposals and has formed the view that it is in the interests of shareholders to engage further with all three parties. As a result, it has granted the three suitors with due diligence access.
The board also advised that it will continue to act in the best interests of all shareholders and will consider any further proposals that support this objective. It also continues to hold on-going discussions with other interested parties in this regard.
For now, though, it has advised shareholders that they do not need to take any action in response to the indicative proposals. It also warned that there is no certainty that any of the proposals will result in a transaction.
