Infomedia has received a conditional non-binding indicative cash bid from Battery Ventures – a US tech-focused private-equity firm for $1.75, dependent on the company entering an exclusivity arrangement, due diligence, board approval and entry into a successful scheme implementation.
The bid follows hot on the heels of TA Consortium’s offer of $1.70 in cash. UBS says Infomedia will provide Battery Ventures with the same limited historical information provided to other interested parties.
All up, UBS observes that the company continues to benefit from strong top-line growth and operating leverage and considers the medium-term outlook to be positive, the company offering a FY23 to FY26 compound annual growth rate of 23% – while casting an eye to recent big contract losses.
Target price steady at $2.15. Buy rating retained.
Sector: Software & Services.
Target price is $2.15.Current Price is $1.72. Difference: $0.43 – (brackets indicate current price is over target). If IFM meets the UBS target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).
