The All Ordinaries Index (ASX: XAO) is up a very modest 0.11% today, but that's not holding back this soaring ASX All Ords tech stock.
Shrugging off broader market concerns over tech company valuations fuelled by Chinese open-source artificial intelligence (AI) developer DeepSeek, the Dropsuite Ltd (ASX: DSE) share price is on fire today.
Shares in the cloud-based software service provider closed on Friday trading for $4.40. In lunchtime trade on Tuesday, shares are changing hands for $5.705 apiece, up a whopping 29.66%.
The huge intraday boost looks to be thanks to a potential takeover bid. Here's what's happening.
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ASX All Ords tech stock soars on acquisition bid
Stoking investor interest in the ASX All Ords tech stock, Dropsuite reported this morning it has entered into a Scheme Implementation Deed with NinjaOne to acquire all of its shares by way of a Scheme of Arrangement.
The all-cash offer is for $5.90 per Dropsuite share. That's 34% above Friday's closing price, and it values Dropsuite at around $420 million.
Barring a superior proposal, the Dropsuite board said it unanimously recommends shareholders vote in favour of the scheme.
Commenting on the takeover bid sending the ASX All Ords tech stock rocketing today, Dropsuite non-executive Chairman Theo Hnarakis said:
While the board is highly confident in the long-term fundamentals and growth prospects of the Company, we believe the Scheme represents a compelling opportunity for shareholders to realise their investment in Dropsuite, for 100% cash at an attractive premium to where Dropsuite has historically traded.
Importantly, the board believes the combination of NinjaOne and Dropsuite's complementary offerings will deliver enhanced solutions and expanded capabilities to our partners and customers globally.
Subject to shareholder approval and standard conditions being satisfied, management expects the scheme to be implemented in late May.
Shareholders were advised they should take no action at this time.
What else is happening with Dropsuite?
Separately today, the ASX All Ords tech stock released its quarterly update covering the three months to 31 December.
Highlights included a 37% year-on-year increase in annual recurring revenue (ARR) on a constant currency basis to $49.8 million. The total paid user count came in at 1.65 million, up 42% from the prior corresponding period.
Dropsuite achieved a monthly annual revenue per user (ARPU) of $2.52, with a product gross margin of 70%.
At the end of the quarter, the company had $28.6 million in cash and no debt.
"With escalating global cyber threats, stricter data regulations and a growing position in the Managed Service Provider channel, Dropsuite achieved another quarter of record growth in Q4 2024," CEO Charif El Ansari stated.
With today's big intraday lift factored in, the ASX All Ords tech stock is up 104% since this time last year.
