The S&P/ASX All Technology Index (ASX: XTX) is down 0.81% today, but one ASX tech share is bucking the trend.
The IntelliHR Ltd (ASX: IHR) share price soared soared 75% in earlier trade to 11 cents before retreating slightly. The company's share price is now soaring 67% to 10.5 cents.
Let's take a look at why this ASX tech share is storming higher today.
Potential takeover
Investors are buying up Intellihr shares today amid news of a potential takeover.
Intellihr has entered a Scheme Implementation Deed for Humanforce Holding Pty Ltd to takeover all of the company's shares. Humanforce is a subsidiary of funds advised by private equity company Accel-KKR.
Under the potential takeover, Intellihr shareholders would receive 11 cents per share. This represents a 75% premium on Monday's closing price of 6.3 cents.
However, with Intellihr shares now up 67% to 10.5 cents, this now represents just a 5% upside on the current share price at the time of writing.
Intellihr's board believes the offer "provides shareholders with certainty of value today" for the potential of the business. Commenting on the news, Intellihr chair and CEO Matt Donovan said:
The board believes the proposed all-cash offer represents attractive value
and provides an immediate opportunity for shareholders to realise certain value at a significant premium to the market.
Humanforce is a provider of workforce management and payroll solutions for deskless workforces. Customers include Flight Centre, Secure Parking, Accore and Delaware North. Commenting on today's news, Humanforce CEO Clayton Pyne added:
There is a compelling synergy between IHR and Humanforce, who share the vision of enabling businesses to drive automated compliance, cost optimisation and engagement by revolutionising the employee experience, through intelligent, employee-centred technology.
IntelliHr share price snapshot
The IntelliHr share price has descended nearly 38% in the last year.
This ASX tech share has a market capitalisation of about $36 million based on the current share price.
