Australia’s Citadel gets $326m bid from PE firm Pacific Equity, shares surge

Sydney Opera House, Sydney, Australia. Photo by Frans on Unsplash

Shares of Australian software company Citadel Group Ltd surged on Monday after an entity owned by the country’s biggest private equity firm Pacific Equity Partners (PEP) proposed to buy it for A$448.6 million ($326.49 million).

Tech-focused companies are seen as winners in the COVID-19 era as the shift to working from home drives people to leverage technology to get things done efficiently and remotely.

Shares of Citadel jumped as much as 41% to A$5.63, just short of PEP’s offer price of A$5.70 per share as investors left room for the possibility of sale discussions falling through.

The deal will take place via a scheme of arrangement, with the offer representing a premium of 43.2% to Citadel‘s closing price on Friday.

Citadel Chairman Peter Leahy said its customers will benefit from access to a broader product suite and service capability with PEP’s backing.

The board has recommended that shareholders vote in favour of the deal in the absence of a superior bid, the Canberra-based information technology services provider said.

The company, which posted a 25% jump in annual core earnings last month, said it plans to declare a special dividend of up to 15 cents per share that will enable shareholders to receive up to 6.4 cents of franking credit benefits.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.