Qoria Ltd (ASX: QOR) shares have returned from their trading halt with an almighty bang.
In morning trade, the ASX tech stock is up 50% to 50.5 cents.
Why is this ASX tech stock rocketing?
Investors have been fighting to get hold of the cyber monitoring company's shares after it entered into a binding merger implementation deed with Aura Consolidated Group.
According to the release, the agreement will see Qoria acquired by Aura through an Australian scheme of arrangement, subject to the satisfaction of certain conditions and the listing of Aura on the Australian share market.
Aura is a US-based provider of intelligent online safety solutions to individuals and families. Its advanced suite of products includes all-in-one protection from identity theft, scams, and online threats, alongside tools that help parents protect children from predators, cyberbullying, and technology-driven mental health risks.
The two parties believe their combination will establish a world-leading safety and online security platform for home, work, and school, unlocking cross-market cross-sell potential and innovation scale.
They note that this platform is expected to deliver immediate value via an enhanced product distribution network, an expanded global portfolio, operational synergies, and robust cross-selling opportunities in a vast, growing addressable market.
What are the terms?
The ASX tech stock revealed that Aura will acquire all Qoria shares through an all-scrip deal at a price equivalent to 72 cents per share. This represents a 111% premium to where the company's shares ended last week. Though, it is worth noting that due to a heavy decline in recent weeks, it is only marginally higher than where Qoria's shares were trading a month ago.
Nevertheless, it values the combined business at approximately $3 billion.
The Qoria board is unanimously recommending shareholders vote in favour of the scheme. Each director intends to vote all their shares in favour of the scheme, subject to there being no superior proposal and the independent expert's report.
The ASX tech stock's managing director, Tim Levy, said:
The internet was created to connect us, yet online safety has eroded, making trust paramount for parents, guardians and organisations, in general, for the protection of our activities online. The combination of Aura and Qoria pioneers a lifelong digital safety ecosystem; a new category that meets the urgent need for technology, education, and trust to protect people – confidently and safely, throughout their entire lives.
Aura's founder CEO, Hari Ravichandran, adds:
Today's announcement marks a definitive step forward in our mission to deliver holistic online safety to everyone. In a world where our digital lives are fragmented across home, school, and work, threats easily exploit the gaps between them. By uniting Aura's AI-powered protection with Qoria's school safety leadership, we unlock a new standard of safety – seamless, continuous protection for every setting and stage of life.
