- Workplace management solutions company Damstra Holdings (DTC) to purchase rival Vault Intelligence (VLT)
- Damstra will acquire 100 per cent of Vault with a scheme implementation deal that values Vault at 46.5 cents per share
- The Vault board has unanimously recommended that its shareholders vote in favour of the scheme
- Shareholders will be able to vote on the scheme at a court-convened shareholder meeting on October 2
- Damstra continued to perform well during the COVID-19 pandemic
- Revenue and other income for the 2020 financial year is expected to be $22.1 million, which is 39 per cent higher than the prior corresponding period
- On market close, Damstra is down 1.86 per cent and is trading for $1.32, while Vault is up 20.6 per cent, trading for 41 cents each
Workplace management solutions company Damstra Holdings (DTC) has entered an agreement to purchase Vault Intelligence (VLT).
Vault is an online software as a service (SaaS) business that specialises in the development of workforce performance technologies.
Damstra will acquire 100 per cent of Vault with a scheme implementation deal. The deal equates to 128 million shares and 10.2 million unlisted options.
Vault shareholders will receive one share in Damstra for every 2.9 Vault shares they hold. This deal values Vaut at 46.5 cents per share.
The acquisition is set to create a larger, more diversified, workplace management
company with an expanded and highly complementary product range.
Under the merged companies, the group will be able to accelerate product innovation, including fever section, facial recognition, remote, mobile and lone workforce solutions. This is especially beneficial in a COVID-19 environment.
Damstra CEO Christian Damstra says since listing on the ASX in October last year, the company has continued its vision of a “great Australian global technology success story.”
“Our solutions reduce and manage workplace risks for clients across sectors including mining, construction and engineering, and more recently education. The advent of COVID-19 has heightened these challenges for employers, in turn driving structural demand for our solutions,” he said.
Once the merger is completed, client numbers are expected to increase from 500 to 800 and user numbers will rise from 400,000 to 550,000.
“Our organic growth outlook remains strong but an acquisition such as Vault represents a low risk and transformational step to gain increased scale and diversification. These and other benefits will allow Damstra to accelerate innovation and our international expansion,” Christian added.
The Vault board has unanimously recommended that its shareholders vote in favour of the scheme.
Vault CEO David Moylan will remain with the company, working with Christian, and will be focusing on the development and expanding global channel partnerships for Damstra.
“It has been apparent from an early stage that our companies and leadership share a common vision with high-quality technology platforms. With the opportunity to
integrate resources and knowledge, the combined product offerings and market reach will be formidable,” he said.
“The transaction will also provide the option for our shareholders to continue the journey, whilst benefiting from the value creation that is expected to arise from merging with Damstra. Uniting the product range and our people under the one banner has the potential to create significant value for our shareholders, clients, partners and employees,” he added.
Shareholders will be able to vote on the scheme at a court-convened shareholder meeting on October 2.
2020 financial results
Damstra has achieved a strong 2020 financial year (FY20) unaudited results. The company has continued to perform well despite the COVID-19 pandemic.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for FY20 is expected to be $5.5 million, which is ahead of its guidance and prospectus forecast.
Revenue and other income was $22.1 million, which is 39 per cent higher than the 2019 financial year.
The company is expecting similar growth for the 2021 financial year.
“For FY21 we expect the business to grow at a similar rate to that in FY20 of 30-40 per cent, “the company explained.
Further details on the operating performance will be provided by the end of July.
On market close, Damstra is down 1.86 per cent and is trading for $1.32, while Vault is up 20.6 per cent, trading for 41 cents each.