Stephen Kowal (Atturra)
Atturra has increased the price it intends to pay for the acquisition of Cirrus Networks by 19 per cent, valuing its equity at $58.6 million.
The revised offer is based on an increase from $0.53 per Cirrus share, as announced on 11 September, to $0.063, with 930,006,385 shares on issue.
According to a statement from Cirrus on the Australian Securities Exchange (ASX), this represents a 53.7 per cent premium to the last undisturbed closing price of Cirrus shares on 8 September 2023, the last trading day prior to the acquisition announcement, and a 49.2 per cent premium to the 30-day volume weighted average price (VWAP) of Cirrus shares to 8 September 2023.
According to the professional and managed services provider, no other terms of the agreement were changed, aside from “consequential amendments and other non-material changes”.
Cirrus said it has agreed to the revised offer, with its board collectively holding 8.95 per cent of ordinary Cirrus shares on issue, recommending shareholders vote in favour of the deal. Additionally, it has entered into a revised scheme implementation deed with Atturra.
The announcement also said that major Cirrus shareholders Microequities Asset Management Pty Limited and H&G High Conviction Limited (H&G) also approve of the deal, with the pair holding a total of 12.95 per cent of Cirrus shares, and have signed a voting intention statement with the provider.
At the time of the first announcement about the deal, Atturra CEO Stephen Kowal said Cirrus has “strong strategic and cultural alignment with” the company’s industry and service capabilities.
“Cirrus will significantly expand Atturra’s recurring managed service capabilities and will provide an enlarged and complementary client base with significant future cross-sell opportunities,” he said at the time.
“Cirrus brings a wealth of expertise in the government and energy and resources industries, having serviced some of the leading names across these sectors respectively, enhancing Atturra’s ability to become a market leader in these sectors. We look forward to working with and welcoming the Cirrus team to Atturra.”
