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Update: This afternoon GBST announced a pause in trading pending an announcement, which was followed by a trading halt that will be in place until the announcement is made or the start of trading on 3 July.
After several months receiving takeover offers from Bravura Solutions (ASX: BVS), Brisbane-based fintech GBST (ASX: GBT) has attracted international interest from a US financial services and software company.
SS&C Technologies Inc (Nasdaq: SSNC) has swooped in on Bravura's pitch by offering an 8.3 per cent premium to the last offer, now valuing GBST at $3.25 per share.
This compares to GBST's $1.98 share price before Bravura's initial bid in April, which started at $2.50 but went up to $2.72 and then $3 late last week.
The new non-binding indicative proposal values the administration and transaction processing software company at $221 million.
The success of the bid is reliant on further due diligence and transaction documentation, as well as regulatory approvals and court & shareholder approval.
If SS&C's due diligence leads to a binding scheme implementation agreement, GBST intends to unanimously recommend the proposal to shareholders in the absence of a superior proposal.
The US group has been granted a four-week process and exclusivity deed to complete its due diligence, with a clause allowing for an extension of five business days if necessary.
"GBST has agreed to certain customary exclusivity provisions during the Exclusivity Period, including noshop, no-talk and no-due diligence restrictions, and notification and matching rights (the no-talk and nodue diligence restrictions being subject to a customary fiduciary carve-out)," GBST said.
Bravura, which provides software solutions in superannuation, pension, life insurance, investment, wrap, private wealth and funds administration, has withdrawn its updated $3 per share proposal but has not ruled out making another offer.
"Bravura reserves all its rights to make any further offers to acquire GBST including in the event of a superior proposal from any third party," the company said in response today.
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