Datasite to acquire Ansarada for $236m
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The news: Mergers and acquisition virtual data room provider Datasite has agreed to a takeover of SaaS platform Ansarada.
The numbers: Datasite will acquire Ansarada for $236.3 million and shareholders will receive $2.5 cash per share if the scheme is approved.
However, Ansarada’s ESG, governance, risk, and compliance, and board products are not part of the deal and will be carved out. Ansarada will divest the assets to an entity associated with its CEO and co-founder Sam Riley for $500,000.
After announcing the potential acquisition, Ansarada's share price was up 15.24% at 2.52pm AEDT.
The context: Datasite’s interest in acquiring Ansarada is related to its deals and procure products rather than its carve-out assets, which are cash flow negative and considered non-core to Datasite’s strategy and business.
Riley has agreed to acquire the carve-out assets and the acquisition is conditional that Ansarada shareholders approve this.
Datasite is owned by private equity investor CapVest.
What they said: Ansarada chair and independent director, Peter James, said the early-stage ESG, GRC and board businesses would continue to operate on a standalone basis with a pre-committed level of working capital.
“These businesses remain in their infancy, and as a collective as loss-making to the Ansarada Group and require continued investment and focus on product market fit, go-to-market strategies and other early stage business considerations,” James said.
Also commenting on the carve-out, Riley said: “The carve-out transaction, whilst presenting more risk as a standalone business, enables maximum value for Ansarada shareholders”.
“...it ensures those early-stage products, customers and the team behind them continue strongly.”
The source: ASX announcement
