Damstra Holdings receives takeover bid, eyes on Ideagen

afr.com:

Workplace management software company Damstra Holdings is back in play.

Street Talk can reveal Damstra’s board, chaired by former Shell M&A man Johannes Risseeuw, has received a takeover bid from UK software firm Ideagen. The offer is pegged at above 25¢ a share, sources said.

If a deal is signed, this would be Ideagen’s second foray into the local market. In 2021, the firm acquired Australian compliance and governance software maker CompliSpace for up to $110 million from Tim Reed’s Potentia Capital.

The CompliSpace purchase is understood to have been successful for Ideagen, prompting it to seek to double down in Australia. Ideagen, itself, was listed in London, until it was swept off the FTSE in May 2022, via a £1.09 billion all-cash takeover offer from London-based private equity firm Hg.

Damstra executive chairman Johannes Risseeuw and CEO Christian Damstra each own about a 10 per cent stake in the company. AFR

Damstra closed on Tuesday at 10¢ a share. The company has seen its share price slide almost 29 per cent this year and is slated to hold its annual general meeting on Wednesday.

It is understood multiple parties are circling the company, although it is unclear if more than one has tabled a firm offer.

In July 2022, Damstra found itself in private equity’s crosshairs, going through a round of takeover talks with a suitor, believed to be Accel-KKR. The US firm knocked on Damstra’s door and was keen to take a look under its bonnet, before sailing off into the sunset, perhaps spooked by market volatility.

At that time, the ASX-listed company called Jefferies’ investment bankers and law firm Gilbert + Tobin for advice.

Damstra’s biggest shareholder is its CEO Christian Damstra with 8.29 per cent, followed by