21st Nov, 2011. New Zealand-based Datasquirt Limited (ASX:DSQ) is pleased to announce the conditional sale of its complete business to LiveOps, Inc., a leading US call centre applications provider, for US$12.5 Million, a 37% premium over Datasquirt’s current market capitalization.
Datasquirt has entered into an asset purchase agreement to sell substantially all of the assets of its business to LiveOps. The total consideration is US$12.5 Million in cash, subject to adjustments for working capital. There is no escrow applied to the consideration and any warranty claims by LiveOps must be made with one year and are limited to US$2.5 Million, except for certain title and IP claims.
Datasquirt is ASX listed but has its head office in Auckland and offers non-voice channel contact management software. Its CONTACT product was a web-based application delivered to customers either as a hosted Software as a Service or installed on site. According to their website “It sits alongside your contact centre voice management system and allows your agents to maintain communications in a particular non-voice channel or switch between non-voice channels such as text and email.”
The Directors anticipate that upon completion of the sale there will be a distribution to shareholders of at least NZ$12.8 Million (NZ$0.41 per share) as a capital return. Following completion of the sale, Datasquirt will be a cash box holding approximately $NZ3 Million (excluding any working capital adjustment) which the Directors will seek to invest in an alternative business, or if no suitable investment opportunities present, return the balance of the cash to shareholders within approximately six months of completion of the sale.
According to press reports, The directors and several key investors had agreed to use most of the proceeds from their distribution from the sale to subscribe for approximately $US7.5million of shares in LiveOps, and LiveOps would keep Datasquirt’s technical development in New Zealand, according to reports.
LiveOps is a US-based leader in providing innovative solutions aimed at solving technology and workforce needs for today’s businesses. The company plans to maintain the current Datasquirt product and service delivery, should the acquisition proceed. Datasquirt is headquartered in Auckland, New Zealand, with offices in London, Sydney and Düsseldorf. DatasquirtTM and CONTACTTM are trademarks of Datasquirt Limited.