(Reuters) – Dye & Durham Ltd, a Canadian cloud-based software maker, has received a buyout offer from a management-led shareholder group worth about C$3.4 billion ($2.8 billion), less than a year after its flotation on the Toronto Stock Exchange.
The offer to take Dye & Durham private for C$50.5 per share represents a premium of roughly 23% to its last closing price of C$40.99, and is some seven times more than the price of C$7.50 set in last year’s initial public offering.
Shares of the company were up about 15% at C$47.27 in early trade on Monday.
In a statement Dye & Durham said a newly formed special committee of independent directors would explore and evaluate potential strategic alternatives, including a merger, the sale of the company or its parts, and the sale of some of its assets, among other options.
However it did not say how the offer was being financed and who among its management and shareholders were supporting it. No-one at the company could immediately be reached for comment.
Led by Matthew Proud, Dye & Durham makes technology products for legal and business professionals, providing them access to government registry data, and simplifying the document search process, its website shows. It has operations in Canada, the United Kingdom, Ireland and Australia.
It acquired Future Climate Info Ltd, a U.K. based company which provides legal professionals with environmental reports meant to aid in property transactions, for about C$94 million earlier this month. https://bit.ly/3uIuMju
The company also acquired U.K. property technology business Terrafirma IDC Ltd for about C$20 million earlier this month. https://bit.ly/3fVJfD6
It said it has access to more than C$1.0 billion in capital which it plans to deploy on accretive acquisitions.
Dye & Durham said it expects C$220 million in pro forma earnings before interest, taxes, depreciation and amortization following recent acquisitions and reflecting its business performance.
($1 = 1.2072 Canadian dollars)
(Reporting by Sohini Podder in Bengaluru; Editing by David Holmes)
