Hansen Technologies (ASX:HSN) receives $1.3B takeover offer from BGH Capital

• Shares in Hansen Technologies (HSN) boost after the software and services provider received a $1.3 billion takeover bid from BGH Capital
• The Melbourne-based private equity firm offered to purchase all of Hansen’s shares for $6.50 each
• That price represents a 25 per cent premium to its closing price of $5.18 per share last week
• BGH Capital to now undertake a six-week period of due diligence before the two companies can agree on a binding deal
• Shares in Hansen Technologies are up 21.62 per cent to $6.30 each

Shares in Hansen Technologies (HSN) have enjoyed a boost after the software and services provider received a $1.3 billion takeover bid from BGH Capital.

The Melbourne-based private equity firm has offered to purchase all of Hansen’s shares for $6.50 each. That price represents a 33 per cent premium to Hansen’s six-month volume weighted-average share price and a 25 per cent premium to its closing price of $5.18 per share last week.

Notably, the consideration price will be dropped by the value of any dividends or distributions declared or paid and is contingent on Hansen successfully achieving its 2021 earnings guidance.

In a statement released this morning, Hansen said its board “has determined that progressing the proposal is in the interests of all shareholders”.

It also said that Managing Director and CEO Andrew Hansen — who holds a 17.5 per cent interest — will work with BGH Capital “to implement the proposal pursuant to a co-operation agreement”.

BGH Capital will now undertake a six-week period of due diligence before the two companies can agree on a binding deal.

Analysts at RBC Capital Markets said the support from Mr Hansen and directors David Osborne and Bruce Adams — who also hold a 17.5 per cent stake each — suggests that the deal has a high chance of going through.

Shares in Hansen Technologies are up 21.62 per cent to $6.30 each at 2:02pm AEST.