RXP Services’ board endorses Capgemini Australia’s $95.5m takeover offer
RXP Services believes the combined group will become a “market leader” in digital, data and cloud services.
Digital solutions provider RXP Services’ (ASX: RXP) board has endorsed Capgemini Australia’s $95.5 million takeover bid, which values RXP at $0.55 per share and is a 61.1% premium to its last trading price.
Capgemini Australia is a subsidiary of Capgemini, which is headquartered in Paris and is listed on the Euronext Paris stock exchange with a €17 billion market capitalisation.
RXP’s board has unanimously recommended Capgemini Australia’s scheme implementation deed, with chief executive officer and co-founder Ross Fielding saying he intends to vote in favour of the offer with his 5.37% shareholding.
Following completion of acquisition, RXP will become a wholly owned subsidiary of Capgemini Australia.
Deal terms
Capgemini Australia is offering RXP shareholders $0.55 per security, which is a 61.8% premium to RXP’s last closing price of $0.34 per share.
It also represents a 46% premium to RXP’s 90-day volume weighted average price of $0.38 per share.
If the takeover is implemented, RXP’s board intends to declare a fully franked dividend of up to $0.05 per share.
RXP claims this will enable certain shareholders to receive up to $0.0214 per share of additional benefit from franking credits attached to the special dividend.
Capgemini Australia plans to fund the acquisition which values RXP at about $95.5 million from its existing cash reserves.
Acquisition rationale
According to Mr Fielding, Capgemini is a global leader in consulting, digital transformation, technology and engineering services.
The all-cash bid from Capgemini Australia will enable RXP shareholders to “realise their investment in full for cash”, he said.
“RXP is a natural fit for Capgemini, and I am very excited by the growth opportunities this will create for our 550 employees within a global and culturally aligned business.”
“In addition, RXP’s valued clients stand to gain from an integrated group through increased scale, a broader skillset and greater service capabilities.”
Capgemini Asia Pacific and Middle East executive chairman Luc-Francois Salvador said post acquisition, Capgemini Australia will become a “market leader” in digital, data and cloud services across Australia.
“This deal will be a step change for Capgemini in Australia and illustrates [the company’s] growth ambition in Asia Pacific.”
“Our strengths will enable us to use insights, design and technology to create inclusive and sustainable futures for our clients,” Mr Salvador added.
It is expected the acquisition will be completed by mid-March next year.