MedAdvisor shares plunge after revealing $35m takeover bid from unnamed suitor
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More news: MedAdvisor shares plunged after emerging from a trading halt following its update on its takeover bid by an unnamed suitor.
Its shares were down 23.08% to 10 cents, almost reversing most of Wednesday’s 30% gains after the initial announcement of the takeover bid.
MedAdvisor revealed today that the suitor offered $35 million and an earn-out but again did not name who the bidder was. It noted the company had a market capitalisation in excess of US$100 billion ($156.45 billion) with revenues in excess of US$10 billion.
MedAdvisor says suitor has offered $35m plus earn-out but won't name company
The news: MedAdvisor has revealed that its unnamed takeover suitor is a listed company with a market capitalisation in excess of USD100 billion ($156.45 billion) with revenues in excess of USD10 billion.
The numbers: The bidder is looking to acquire the pharmacy software company for a headline price of $35 million plus an uncapped contingent consideration comprised of a three-year earn-out based on the performance of MedAdvisor.
The earn-out is estimated to recoup $7.35 million which would result in a total consideration of $42.35 million.
It noted that $8 million of the headline price would be held back and retained by the purchaser and paid after the transaction completed and adjustments had been determined.
The same agreement is expected to be announced before 30 June 2025.
The context: MedAdvisor announced on Wednesday that it received an acquisition proposal from an unnamed “prominent multinational listed software business”.
Today, MedAdvisor said the suitor’s identity “is not information that a reasonable person would expect to have a material effect on the price of value of the entity’s securities”.
The letter of intent is non-binding and the potential transaction is subject to due diligence.
The source: ASX
