Shares in Iress surged more than 11% after it confirmed it was in talks about a possible buyout with asset management giant Blackstone and private equity firm Thoma Bravo.
The financial services technology company was responded to a story in the Australian Financial Review newspaper (AFR) that it was negotiating with Blackstone over a buyout at more than $10 per share.
Citing people briefed on the matter who requested anonymity as they were not permitted to speak publicly, the AFR also reported that another American private equity firm Thoma Bravo had expressed interest in Iress.
Iress confirmed it had considered a prior approach from Blackstone at A$10.50 cash per share in relation to a potential acquisition but the offer was withdrawn.
“Iress is currently in the early stages of engagement with Blackstone and Thoma Bravo in order to ascertain whether an offer can be made which can be recommended by the Iress Board,” the company said in an ASX announcement.
“There can be no certainty that any proposal or offer will be forthcoming from either party, or that any offer, if received, will lead to a binding transaction. Iress shareholders do not need to take any action at this time.”
The Iress Board was fully committed to acting in the best interests of, and maximising value for, shareholders and would update the market in accordance with its continuous disclosure obligations.
At the time of writing the shares had risen 94 cents or 11.22% higher to $9.32, capitalising the company at $1.77 billion, after trading between $9.21 and $9.69.
Blackstone and Thoma Bravo were approached for comment but had not responded at the time of writing.
