Life360 (ASX:360) completes Tile buy

• Life360 (360) has completed its acquisition of fellow US-based bluetooth tracking business Tile
• The company, which owns and runs the family-tracking app Life360, spent US$205 million (A$284 million) acquiring Tile
• Life360 funded the acquisition through a $280 million underwritten equity raise, with an offer price of $12 per CDI
• Life360 previously labelled the Tile acquisition as the “most impactful deal in our company’s history”
• Company shares are down 7.13 per cent at $8.47

Life360 (360) has completed its acquisition of fellow US-based bluetooth tracking business Tile.

The company, which owns and runs the family-tracking app Life360, spent US$205 million (A$284 million) acquiring Tile.

That includes a $132.4 million cash payment, $37.6 million share payment and $35 million in retention equity awarded to Tile if they hit set revenue goals.

Life360 funded the acquisition through a $280 million underwritten equity raise, which has now been completed.

The raise consisted of an entitlement offer and a placement, with an offer price of $12 per CDI.

At the time the buy was first announced, Life360 CEO Chris Hulls said the acquisition was the “most impactful deal in our company’s history”.

“We had the platform of mobile phones covering people. They had the hardware device covering things,” he said.

“We almost joined the companies together many times in our history, and I have been close with Tile’s current CEO, CJ Prober, since he took the reins in 2018.

“So this is not an opportunistic deal that came about from our strategic review, but rather the acquisition I’ve been hoping to make for the better part of a decade.”

Following the acquisition being completed, shares in Life360 have dropped over 7 per cent wiping 65 cents from its share price.

Life360 was down 7.13 per cent to $8.47 per share as of 2:28 pm AEDT.