LiveTiles confirms acquisition talks with software firm Bigtincan

Aussie-born Microsoft ISV partner LiveTiles has revealed it in discussions with fellow ASX-listed software company Bigtincan Holdings for a potential acquisition.

Responding to a report from the Australian Financial Review’s Street Talk column yesterday, LiveTiles said Bigtincan has offered to acquire the company for $0.07 per share through an unsolicited, indicative and non-binding proposal.

LiveTiles said Bigtincan will look to fund the acquisition through cash reserves and a planned capital raise at a later date.

The company added Bigtincan’s proposal is still subject to a number of conditions, including the completion of due diligence by Bigtincan and negotiation of a scheme implementation agreement.

“The board of LiveTiles will carefully consider the proposal and advise shareholders of its views once the proposal has been assessed. In the meantime, shareholders should not take any action in response to the proposal,” LiveTiles’ announcement read.

“There is no certainty that the proposal will lead to a definitive transaction or offer being made for LiveTiles.”

In a separate announcement, Bigtincan said, “Discussions between Bigtincan and LiveTiles are preliminary in nature. No agreement has been reached and there is no certainty that any transaction will eventuate.

Also based in the US, Bigtincan specialises in sales enablement software solutions, including content management, training, coaching and buyer interaction.

In August, LiveTiles announced plans to delist from the ASX amid the underperformance of its share price and lower levels of trading liquidity, as well as the flow on consequences.

In September, LiveTiles revealed it was undergoing an operational review to “refocus its growth strategy” and “prioritise profitability”, with the full outcome set to release this month.

The company at the time also revealed co-founder and chief experience officer Peter Nguyen-Brown would be stepping down upon completion of the operational review.

“The entire board believe that a fresh injection of senior management talent will help drive the next growth chapter for LiveTiles,” the announcement read.

“Considering this, the decision has been made that will see Peter step down from the company. Peter will support the board until the full completion of the operational review to ensure an effective transition and the completion of near-term projects.”

Earlier that month, LiveTiles’ shareholders voted down the board’s recommendation to delist from the ASX in an Extraordinary General Meeting (ESG). 

“Our undervalued share price implies a valuation that remains consistently and materially lower than the valuations of unlisted companies of a comparable nature and stage to LiveTiles,” the board said in its chairman’s address to the ESG on 5 September 2022.

LiveTiles develops intranet and digital workplace software built on Microsoft technology. Founded in 2012, the company was spun off from Office 365, Azure and SharePoint consultancy nSynergy. The consultancy was sold to Rhipe in 2015 and LiveTiles was listed on the ASX the same year through a reverse acquisition with Western Australian mining company Modun Resources.