Bid for Bravura
Private equity group Ironbridge Capital has made a non binding offer for Bravura Solutions, but a stake held by Lift Capital administrators complicates the issue.
Buyout firm Ironbridge Capital has emerged as the front-runner to buy financial services software specialist Bravura Solutions, and has been granted an unspecified period of exclusivity with the vendors.
Ironbridge has made a non-binding offer of $1.73 cash a share for Bravura, valuing the company on an enterprise basis at $272 million. Should it be accepted and completed, it will be the first public-to-private deal completed since the buyout of Coates Hire earlier this year.
Bravura is receiving advice from an O'Sullivan Pullini team led by Amrit Bahra, while Ironbridge's team led by Neil Broekhuizen is in turn using a Macquarie team led by Jeremy Tasker, along with Michael Brial from buyout advisory specialists Oaktower Partnership.
The Ironbridge offer would deliver a premium over its last trading price of $1.46, and reflect the share price for much of the past 11 months. A year ago, however, Bravura shares were trading above $2.40.
Any deal is conditional on the ownership of a near one third stake in the company being resolved. That stake was repossessed by Lift Capital creditor Merrill Lynch and is currently in the hands of administrators McGrath Nichol.
However, Iain Dunstan and Simon Woodfull, who co-founded the business after a management buy-out of the Australian division from US-based IT giant CSC in 2004, believe they retain beneficial ownership of the stake, and Ironbridge wants Dunstan and Woodfull to continue with the company and be able to reinvest their stake in the buyout proposal.
Ironbridge has been eyeing Bravura for some time. Although it has no similar businesses in its portfolio, it is attracted to the wealth management and outsourced services industries, and Bravura's ability to offer cost-cutting opportunities through its software.
Any purchase would be made through Ironbridge's second fund, which raised $1.05 billion and is about one third invested.
Ironbridge has made a non-binding offer of $1.73 cash a share for Bravura, valuing the company on an enterprise basis at $272 million. Should it be accepted and completed, it will be the first public-to-private deal completed since the buyout of Coates Hire earlier this year.
Bravura is receiving advice from an O'Sullivan Pullini team led by Amrit Bahra, while Ironbridge's team led by Neil Broekhuizen is in turn using a Macquarie team led by Jeremy Tasker, along with Michael Brial from buyout advisory specialists Oaktower Partnership.
The Ironbridge offer would deliver a premium over its last trading price of $1.46, and reflect the share price for much of the past 11 months. A year ago, however, Bravura shares were trading above $2.40.
Any deal is conditional on the ownership of a near one third stake in the company being resolved. That stake was repossessed by Lift Capital creditor Merrill Lynch and is currently in the hands of administrators McGrath Nichol.
However, Iain Dunstan and Simon Woodfull, who co-founded the business after a management buy-out of the Australian division from US-based IT giant CSC in 2004, believe they retain beneficial ownership of the stake, and Ironbridge wants Dunstan and Woodfull to continue with the company and be able to reinvest their stake in the buyout proposal.
Ironbridge has been eyeing Bravura for some time. Although it has no similar businesses in its portfolio, it is attracted to the wealth management and outsourced services industries, and Bravura's ability to offer cost-cutting opportunities through its software.
Any purchase would be made through Ironbridge's second fund, which raised $1.05 billion and is about one third invested.
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