Perth-based technology company Qoria (ASX: QOR) is set to become a wholly-owned subsidiary of US technology platform Aura Consolidated Group if a proposed merger between the two companies goes ahead.
The merger would establish a world-leading safety and online security platform for home, work, and school, unlocking cross-market and cross-sell potential and innovation scale.
The combined platform will deliver immediate value via an enhanced product distribution network, an expanded global portfolio, operational synergies, and robust cross-selling opportunities in a growing addressable market.
Aura provides intelligent online safety solutions offering all-in-one protection from identity theft, scams, and online threats, as well as tools to help parents protect children from predators, cyberbullying, and technology-driven mental health risks.
Qoria listed on the Australian Securities Exchange in 2016 and expanded into North America a year later, providing protection to more than 30 million children in 100 countries across its education platform and through its parental control products, supporting early identification and intervention where students are at risk.
Unanimous Board Approval
Under the terms of the merger, Aura will acquire Qoria in consideration for Aura shares in the form of CHESS Depositary Interests (CDIs) whereby Qoria investors will receive one Aura CDI for every 17.2 Qoria shares.
The Qoria board has unanimously recommended that shareholders vote in favour of the transaction, subject to the absence of any superior proposal and an independent expert concluding that it is in the best interests of Qoria shareholders.
Unanimous approval from the Aura board and its shareholders has underscored confidence in the strength of the combined group.
Existing Aura shareholders have committed to an equity placement of $107 million at an expected price of $12.38 per AXQ share.
This equates to an implied price of $0.72 per Qoria share, placing a $3 billion pre-money equity value for the combined business.
New Standard of Safety
“In a world where our digital lives are fragmented across home, school and work, threats can easily exploit the gaps between them,” Aura chief executive officer Hari Ravichandran said, adding that the merger marked a step forward in the mission to deliver holistic online safety to all communities.
“By uniting Aura’s AI-powered protection with Qoria’s school safety leadership, we can unlock a new standard of safety—seamless, continuous protection for every setting and stage of life.”
Mr Ravichandran said the combined group had a proforma annual recurring revenue (ARR) at end December of $452m and a targeted ARR growth of more than 20% this year.
Qoria managing director Tim Levy — who co-founded the company as Family Zone in 2015 — has been appointed to lead the group, which will trade on the ASX using the ticker code AXQ.
“The internet was created to connect us yet online safety has eroded, making trust paramount for parents, guardians, and organisations for the protection of our activities online,” Mr Levy said.
“The combination of Aura and Qoria pioneers a life-long digital safety ecosystem — a new category that meets the urgent need for technology, education and trust to protect people confidently and safely, throughout their entire lives.”
