Nearmap has hired investment bank Citi and law firm DLA Piper after receiving a $1.1bn buyout proposal from private equity firm Thoma Bravo.
The $2.10 per share cash bid values the company’s equity at about $1.1bn and the offer is a 39 per cent premium to Nearmap’s closing share price of $1.51 on Friday.
Thoma Bravo is working with law firm Gilbert + Tobin and has been granted exclusive due diligence for seven days.
Nearmap Limited is an Australian aerial imagery technology and location data company that provides frequently-updated, high-resolution aerial imagery of 90 per cent of Australia‘s population, 80 per cent of the United States population, 75 per cent of the New Zealand population, and 65 per cent of Canada’s population.
Thoma Bravo is one of the largest private equity firms in the world with more than $Us114bn in assets under management, investing in growth oriented companies in the software and technology sectors.
It has invested in more than 380 companies worth over $US190bn collectively on an enterprise value basis.
Its offer was received by Nearmap on July 6 and the company had offered due diligence to Thoma Bravo.
The company’s due diligence is now at an advanced stage and the exclusive due diligence period starts on August 15.
Nearmap has also agreed to pay Thoma Bravo an expense reimbursement fee of up to US$3m if an agreement is not reached.
The offer comes after a number of other non-binding expressions of interest for Nearmap, the company said.
The board did not consider the offers to be in the best interests of shareholders.