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AAP
AAP
Business
Derek Rose

Nearmap in advanced $1b takeover talks

Nearmap provides high-quality aerial imagery, such as this one of the March 2022 flooding in NSW. (PR HANDOUT IMAGE PHOTO) (AAP)

Nearmap shares are up by more than a quarter this morning after the aerial imaging company disclosed that it is in advanced takeover talks with a US private equity firm that invests in software companies.

Thoma Bravo is proposing to pay $2.10 in cash for Nearmap shares, a 39 per cent premium to their closing price on Friday and a 67 per cent premium to their six-month volume weighted average price.

The Sydney-based company says Thoma Brava approached it back on July 6 and the private equity's due diligence was now at an advanced stage.

It has granted the suitor a week of exclusivity to determine whether a transaction can be reached.

It has also agreed to pay Thoma Bravo a $3 million break fee if a deal isn't reached within six months, although Nearmap still cautioned that there was no certainty a deal would be reached.

The US private equity firm has $US114 billion in assets under management and has acquired or invested in over 380 companies.

Nearmap said it had received a number of other tentative takeover offers, but didn't consider any in the best interest of shareholders.

At 10.41am AEST, Nearmap shares were up 28.2 per cent to a nine-month high $1.935.

Nearmap is scheduled to release its full-year results on Wednesday and said it expected to announce group annual contract value of $159.9 million, at the top end of guidance of $150 million to $160 million.

Nearmap provides high-quality 3D aerial imagery captured by fixed-wing airplanes covering areas where most of the population in Australia, the United States and New Zealand live. The images are available via subscription to a diverse client base.

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