AFR: Novatti raising $45m for acquisitions, including Reckon stake
Payments technology company Novatti is tapping investors for $45 million, in part to fund the purchase of a 15 per cent stake in practice management software company Reckon.
Novatti has appointed Petra Capital as the sole lead manager and the raise will be comprised of three tranches – a $40 million institutional placement over two tranches and a share purchase plan for retail investors of up to $5 million.
Reckon shares jumped on Wednesday on news that Novatti was acquiring a significant stake.
Shares are on offer at 55¢ per share – a 14.1 per cent discount to Novatti’s last close price, and a 17.2 per cent discount to its five day volume-weighted average price.
The fintech has worked with the likes of Telstra, Cathay Pacific, APT Luxury Travel and buy now pay later provider SplitPay.
It also completed a $10.2 million raise last year to fund its growth.
Novatti is committed to buying at least a 15 per cent stake in Reckon at a cost of $17 million.
Reckon’s flagship business is in providing accounting management software. It competes with Xero and MYOB in this field, having white labelled its Reckon One small-business accounting software product through the Institute of Public Accountants.
It has also expanded its practice management software into the allied health industry, having signed a three-year deal with the Australian Physiotherapy Association.
On the back of the announcement Reckon shares soared more than 20 per cent in morning trade on Wednesday.
Source: The Australian Financial Review