Australian aerial imaging company Nearmap Limited (ASX:NEA) announced a $1.1 billion takeover offer from a large US private equity firm yesterday but the proposal didn?t come out of the blue.
Sources say Chief Executive Dr Rob Newman has been out and about in the market for the past 12 months talking to potential parties, which led to the discussions with Thoma Bravo.
Why?
Earlier this year, it was revealed rival Eagleview was suing Nearmap for alleged patent infringement, and that saw shares in the company drop by more than 20%.
Nearmap believes the business will be able to successfully defend the patent infringement, but brokers have been considerably more cautious about the outcome, and the potential impact on the business.
If we look further back, Nearmap shares have lost more than 60% of their value since hitting a peak in 2019, making the firm an attractive target for Thoma Bravo which have shown increasing interest in discounted purchases in Australia in recent years.
Thoma Bravo is a big fish in the US, specialising in technology deals.
The board has determined the proposal to be credible and sufficient to initially grant non-exclusive due diligence access to Thoma Bravo.
Shares in Nearmap soared 24.7% higher yesterday following the announcement. It will report its earnings to the market tomorrow.