to Acquire Link Group in Transformative C$3.2 B Transaction - Further expands Dye & Durham's global footprint and positions the Company as a clear leader in B2B software and information service solutions.
- Will broaden product suite for existing clients and expands customer base in key strategic U.K. and Australian markets.
- Acquisition will be financed through a C$3.25 billion senior secured debt facility with Goldman Sachs, Ares and J.P. Morgan acting as joint lead arrangers and C$841 million in exchangeable preferred shares issued to Ares.
- In connection with the transaction, Dye & Durham also secures commitment to complete a strategic share issuance at C$53.00 per share.
TORONTO, Dec. 21, 2021 /CNW/ - Dye & Durham Limited (TSX: DND) ("Dye & Durham" or the "Company"), a leading provider of cloud-based software and technology solutions, today announced it has entered into an agreement to acquire Link Administration Holdings Limited (ASX: LNK) ("Link Group"), a technology-driven market leader that connects people with their assets responsibly, securely and safely. As part of the transaction, Dye & Durham will also indirectly acquire Link Group's approximate 43% ownership stake in PEXA Group Limited (ASX: PXA) ("PEXA"), which operates Australia's leading digital property exchange network and helps lawyers, conveyancers and financial institutions settle transactions and file documents electronically.
Under the terms of the acquisition agreement, Dye & Durham will acquire Link Group for cash consideration of approximately C$3.2 billion, or A$5.50 per common share, representing a 15% premium to the closing price of Link Group's shares on the ASX as at December 21, 2021.
"This is a transformational acquisition for Dye & Durham and represents a major step forward in our 'Build to a Billion' strategy to achieve C$1 billion of adjusted EBITDA," said Matthew Proud, CEO of Dye & Durham. "This transaction will enable us to expand our proven model into adjacent markets, where Link Group's products share the same attributes of our existing offering: digital infrastructure-like assets that provide essential services to clients and their customers and generate stable and sustainable cash flows. Link Group has achieved critical mass across multiple product categories in Australia and the United Kingdom – two of our key markets – and this acquisition both diversifies and strengthens our position in these geographies."