Novatti Group Limited (ASX:NOV) has entered into share purchase agreements for the acquisition, subject to completion of a capital raising, of an equity interest of at least approximately 15% in ASX-listed Reckon Limited (ASX:RKN).
Reckon is a leading provider of accounting, expense management and scanning/print management software for over 100,000 SME clients globally.
Novatti entered a trading halt this morning to undertake a capital raising part of the proceeds of which are intended to fund the acquisition of the Strategic Stake. The share purchase agreements for the acquisition of the Strategic Stake will complete after completion of the capital aising.
Under the share purchase agreements, Novatti will acquire the Strategic Stake at a price of $1.00 per Reckon share from institutional investors for a total amount of approximately $17 million (representing approximately 17 million Reckon shares).
We are delighted to have secured a strategic stake in ASX-listed Reckon,” Novatti Managing Director, Peter Cook, said.
“Reckon has a steady revenue and earnings profile, with over 100,000 customers in its business group. The business has strong cash flow generation, has significantly paid down its debt and historically paid sustainable dividends to its shareholders.
“We look forward to successfully completing the capital raising and joining the Reckon share register as a major shareholder.”