Task Group attracts $310m takeover bid from US-based PAR Technology

Australian software company Task Group (ASX: TSK) has attracted a $310 million takeover offer by US-based PAR Technology by way of a scheme of arrangement.

PAR is a global restaurant technology company with hardware, software, loyalty, drive-through and back-office solutions implemented in over 70,000 restaurants across more than 110 countries.

Task delivers centralised and integrated point-of-sale (POS) terminal management services, as well as real-time sales data and interactive customer engagement for hospitality venues including stadiums and casinos.

Consideration options

Under the terms of the takeover bid, Task shareholders could receive a cash consideration for their holding at a price of $0.81 per share, representing a 103% premium to the closing price of $0.40 per share on 8 March and a 107% premium to the 30-day volume-weighted average price.

Alternatively, they can opt to receive a mixed consideration comprising PAR stock at a ratio of 0.015 PAR shares for each Task share, with the balance payable in cash.

Based on a $US43.41 closing price for PAR shares on 8 March, the share consideration implies a value of $0.98 per Task share.

Certainty of value

The Task Group board has unanimously recommended shareholders vote in favour of the takeover based on perceived certainty of value from the cash consideration and potential for additional future value from the mixed option.

They have acknowledged the potential to create “meaningful synergies” through an expansion of PAR’s geographic coverage, the addition of Task’s complementary customer base of major hospitality, stadium, food service, and casino groups to PAR’s business, along with the enhancement of PAR’s product suite with Task’s state-of-the-art, end-to-end customer engagement and transaction platform.

The board has retained Latimer Partners as corporate adviser for the proposed takeover and King & Wood Mallesons as legal adviser.

International ambitions

Task chief executive officer Daniel Houden said he was “excited” by the combination of Task and PAR.

“[This transaction] offers Task a better base on which to achieve our international ambitions,” he said.

“It provides a strong group with significant opportunities for our employees and provides certainty for our shareholders who have supported the growth of Task to become a meaningful player in the global retail software market.”

PAR Technology president Savneet Singh echoed Mr Houden’s comments.

“The combination of the two most complete technology solutions in our industry is incredibly exciting,” he said.

“Together, PAR and Task will serve our respective customers globally and create a talent base we believe to be unmatched in the industry.”