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.
