Bravura increases acquisition bid for fintech service provider GBST

ASX-listed financial software vendor Bravura Solutions has further raised its bid to acquire IT service management provider GBST.

The company is now offering $3 per share, or just over $200 million, up from last week’s price tag of $2.72 per share, or $187 million.

This is the second time Bravura has increased its bid, initially offering $2.50 per share in April this year.

GBST confirmed it was approached by a number of other parties looking to outbid Bravura, but did not reveal their names.

“The GBST board has determined that it is in its best interests of GBST shareholders to conduct a confidential formal process with respect to its strategic options, including the potential to provide a period of exclusive due diligence access,” the announcement read.

GBST gave interested parties a deadline of 4:15pm on 3 July 2019 to submit their indicative proposals.

Meanwhile, Bravura told GBST’s board that it won’t increase the offer any further unless a third party offers a superior proposal.

“Bravura has undertaken a substantial amount of work assessing a potential acquisition of GBST,” Bravura said in a statement.

“This includes analysis based on publicly available information and preliminary due diligence, including a management presentation and CFO session.”

GBST said Bravura’s updated offer does not include some “key elements”, like the absence of an Exclusivity Deposit Fee, which GBST said is in recognition of the costs it expects to incur as well as the opportunity cost of excluding other offers.

“The board of GBST, together with its financial and legal advisers, is reviewing the updated indicative proposal,” GBST said.

“GBST shareholders are advised to take no action in relation to the updated indicative proposal at this time and the GBST board will update shareholders when it has been fully assessed.”