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Prophecy International Holdings (ASX:PRO) has this week acquired fellow tech developer Complexica Pty Ltd in an all-scrip buy-up deal that now sees the software pair come together in an ASX-listed “AI pure play.”
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The “larger, more competitive” new business will remain listed on the ASX, with a name update to “Complexica Group” the biggest planned change.
“The proposed merger represents a transformational change for Prophecy, uniting our best-in-class enterprise applications and 40-plus years track record of serving blue-chip customers with Complexica’s market-leading AI capabilities,” Prophecy’s chairman, Ed Reynolds, explained today.
The new Complexica listing will create “an AI-first, end-to-end solution that will be the first of its kind on the ASX,” the company’s chairman spruiked.
“The Complexica team shares our strategic vision,” Mr Reynolds added. “We are excited by the compelling product synergies and significant growth opportunities that will be unlocked through the proposed merger of our business.”
Complexica’s co-CEO Jonathan Drake agreed the deal was pivotal for his company’s ambitions and said his team saw the team-up as “incredibly compelling.”
“What excites me most is the depth of experience and the highly complementary expertise of our combined leadership team, which positions us exceptionally well for the next phase of growth,” Mr Drake declared.
Prophecy issued 45.3 million shares to Complexica shareholders; a further 2.2M zero exercise options will also be shared in the same package, HotCopper understands. Those will become available once the deal closes.
Once the acquisition wraps up, Prophecy holders will carry 62% of the company.
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As for all the red tape around listings, HotCopper understands the merged company will register the “Complexica Group” at the EGM; the merger is, of course, not hinged on whether the name change goes through.
The new combined company will eventually appear under ticker code “CPX.”
Most recently, PRO last sold at 37cps at close on Wednesday.
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