One of the most shorted stocks on the ASX just got takeover offer at a big premium.
Aconex, an Australian company with software for construction projects, is being bought by US-based global tech giant Oracle for $1.6 billion.
The $7.80 cash per share is 47% higher than Friday’s closing price of $5.29. The offer represents a more than four times return on the IPO price of $1.90 a share in December 2014.
Aconex is the 10th most shorted stock on the ASX with about 10% of stock sold short.
In early trade today, the shares were up 44% to $7.63.
“The Aconex and Oracle businesses are a great, natural fit and highly complementary in terms of vision, product, people and geography,” says Leigh Jasper, Co-Founder and Chief Executive Officer, Aconex.
“As Co-Founders of Aconex, both Rob Phillpot and I remain committed to the business and are excited about the opportunity to advance our collective vision on a larger scale, and the benefits this combination will deliver to our customers.”
The offer price gives Aconex a market capitalisation of $1.6 billion
Oracle SVP and GM, Construction and Engineering Global Business Unit, Mike Sicilia, said: “Delivering projects on time and on budget are the highest strategic imperatives for any engineering and construction organisation. With the addition of Aconex, we significantly advance our vision of offering the most comprehensive cloud-based project management solution for this $14 trillion industry.”