Vault Intelligence share price soars 19% following takeover offer

Today, the Vault Intelligence Ltd (ASX: VLT) share price rose by 19.12% to $0.40 cents following a takeover offer from Damstra Holdings Ltd (ASX: DTC). 

What were the terms of the offer?

If the takeover goes ahead, Vault shareholders will receive 1 share in Damstra for every 2.9 Vault shares they hold. This values Vault at an implied $0.464 cents per share. The offer represents a premium of 36.5% over the Vault closing price on 6 July of $0.34. If the deal goes ahead, Vault shareholders will own 25% of fully diluted Damstra-issued capital.

According to an announcement released by Damstra, each company has highly complementary product sets and respective client bases. Damstra is a global provider of integrated workplace management solutions, and expects that the takeover will provide increased revenue diversity, greater scale and a platform for accelerating growth. It also expects synergies of $4 million within 12 months of the acquisition.

Damstra also announced that its financial year 2020 unaudited earnings before interest, tax, depreciation and amortisation were $5.5 million. 

According to Damstra, the merged group will have pro-forma revenue and other income of $33 million to $35 million.

The directors of Vault, including the company’s CEO and founder, recommended that Vault shareholders vote in favour of the offer.

About the Vault Intelligence share price

Vault Intelligence is a software provider that provides solutions for workforce performance. The software provided by Vault involves wearable solutions with applications including smart watch-based software. Vault aims to deliver productivity gains to to organisations while helping them to manage the risk, safety, security, protection and connection of workers. 

Vault currently has a number of partnership for distribution of its software. The company recently signed an agreement with Vodafone New Zealand for that company to become a reseller of its software. It also recently signed an agreement with a Singapore blue-chip customer for an upscale from 1,000 solo licenses to 7,500 solo licenses with over 2,500 wearable devices provisioned in June. Vault also has an agreement with Peninsula Health for the support of 40,000 seniors. 

During the June quarter, Vault also signed agreements with NZ Post, Visy Recycling, Hirepool, Sorbent, Asaleocare, DB Breweries and multiple councils across Australia and New Zealand.

The Vault Intelligence share price is up 344% from its 52 week low of $0.09. It has dropped 2.44% since the beginning of the year, but has increased 81.8% since this time last year.

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Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Damstra Holdings Ltd. The Motley Fool Australia has recommended Damstra Holdings Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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