A Texan company has launched a 100%, $40 million takeover offer for global retailing software company SLI Systems, which more than doubles the company's value last Friday.
The 63c per share offer by software investor Texas-based ESW Holdings values Christchurch-based SLI at $40million - and it has already secured a 51% stake.
Aside from ESW Holdings' 63c offer, it is also seeking to buy all unlisted options for SLI shares, ranging in price from 3c up to 34c per option.
ESW Holdings already has agreements with 18 SLI shareholders to sell their stakes, which represents 51% of SLI's shares.
SLI's e-commerce software assists online retailers achieve higher sales and repeat customers, seeking to generating more traffic, converting more shoppers into buyers and increasing order values.
SLI started in 2003 and listed on the NZX in mid-2013, posting its maiden profit, of $4 million, for its past year-to-June trading.
Earlier this year, major shareholders ANZ and Pioneer capital sold their respective stakes, for about 25c per share.
On Friday, SLI's shares were 30c, valuing the company at $18.6 million, and after yesterday's announcement they jumped more than 86% to 56c by noon.
SLI's chairman Greg Cross responded to the offer, saying SLI had subsequently formed a takeover subcommittee of independent directors to assess the offer, and urged the remaining shareholders to ''take no action'', until they received the committee's report and offer valuation.
One of the offer's conditions is that ESW Holdings attain 90% acceptances, meaning it can compulsorily buy the remaining 10% of shares outstanding.
Mr Cross said SLI's managed services business had been ''steered'' into profitability and it had invested in new product development to return the company to ''growth mode''.
He said ESW Holding's offer would allow shareholders to realise a ''significant premium'' and would otherwise ''eliminate the ongoing execution risks'' of SLI's ''transition phase''.
BusinessDesk reported Austin, Texas-based ESW buys and grows software companies, targeting firms with an enterprise value of between $US10 million and $US250 million. SLI's 2013 initial public offering raised $27million, at $1.50 a share.
