PEP’s understood to be keen to try to grow the business in Australia and offshore. ReadyTech provides student management system to education and training groups, SaaS payroll and HR software and case management software to government and justice departments.
The group listed 3½ years ago at $1.51 a share, and last traded at $3.24. It reported $78.3 million revenue and $27.5 million underlying EBITDA in the year to June 30, and a $14.3 million underlying profit.
Its shares are down 15 per cent this year.
The bid comes as private equity firms and offshore strategic groups pounce on sold-off Australian software companies, who have fallen out of favour in the past 12-months as interest rates rise and investors put a heavier discount on future cash flows.
Should ReadyTech get a firm bid, it would join ASX-listed Nearmap, Elmo Software, Nitro Software, Infomedia, Pushpay and Tyro Payments to attract offers in the past three months, while bankers are running around trying to put bids together for other bombed-out names.
$500m-plus deal
Bids are flying in from Australian and offshore private equity firms, and strategic suitors from the United States who are keen to make the most of the strong US dollar.
A bid at a 30 per cent premium to Monday’s closing price would value ReadyTech at about $500 million on an enterprise value basis.
The company’s shares were trading at 3.6-times forecast revenue and 10.6-times next 12 month EBITDA on Monday.
