- Nitro Software (NTO) to raise $140 million to purchase Belgium’s leading eSign software-as-a-service business Connective NV
- Nitro will pay for Connective through a $140 million equity raise, which includes an $80 million placement and $60 million entitlement offer
- The equity raise will see shares sold at $3.43 each, a 10.7 per cent discount to the last closing price
- If successful, the combined company will become the third global player in the enterprise eSign market
- Nitro entered into a trading halt this morning as it undertakes the placement and last traded for $3.84 per share
Nitro Software (NTO) is looking to raise $140 million to purchase Connective NV.
Connective is Belgium’s leading eSign software-as-a-service business, with fast growing market share in France and customers in 11 other European countries.
The business focuses on serving the needs of enterprise and government customers that require high levels of trust, security and regulatory compliance, while also offering expansive electronic identity support and a powerful document workflow automation solution.
The acquisition is in line with Nitro’s product-driven strategy, targeting the US$17 billion (A$23 billion) eSigning market.
If successful, the combined company will become the third global player in the enterprise eSign market.
Nitro will pay for Connective through a $140 million equity raise, which includes an $80 million placement and $60 million entitlement offer.
The equity raise will see shares sold at $3.43 each, a 10.7 per cent discount to the last closing price.
Under the entitlement offer, existing eligible shareholders will be able to purchase one new share for ever 11.4 Nitro share they own.
Nitro’s Co-founder and CEO Sam Chandler said this is a “milestone moment” for the company.
“With the acquisition of Connective, Nitro is well placed to become the third global player in the fast-growing enterprise eSign market. Connective adds highly secure, enterprise-grade eSigning, eID and workflow capabilities to Nitro’s existing eSign solutions at a time where increased trust, security, and regulatory compliance are vital to
business success,” Mr Chandler said.
“With data security at a premium, the future of eSigning is built around hightrust eID-driven solutions, and this acquisition positions Nitro to become a global leader.”
Nitro entered into a trading halt this morning as it undertakes the placement. Under the halt, company shares will be paused until Thursday, November 11.
On the market, Nitro last traded at $3.84 per share.