Life360 (ASX:360) - CEO, Chris Hulls
CEO, Chris Hulls
Source: Chris Hulls/LinkedIn
Market Herald logo

Find out more about this capital raise

Be the first with the news that moves the market
  • Family app developer Life360 (360) is acquiring US-based bluetooth tracking business Tile for up to US$205 million (A$284 million)
  • Life360 says the purchase is the most impactful in its history as the companies have always shared a similar vision of using tech to protect what matters most
  • The acquisition is being funded by a $280 million equity raise which comprises an entitlement offer and institutional placement
  • Life360 expects to come out of the trading halt on November 25, with shares last trading at $13.51 on November 22

Life360 (360) has entered a trading halt ahead of an acquisition and fully underwritten equity raise.

Soon after entering the halt, the family app developer announced the details of a US$205 million (A$284 million) acquisition and a $280 million equity raise.

The acquisition

The San Francisco-based company entered a binding agreement to acquire bluetooth tracking business Tile for up to US$170 million (A$235.3 million), plus up to an additional US$35 million (A$48.5 million) in retention awards for Tile employees.

Since it launched in 2012, Tile has sold over 45 million trackers which vary in size and can be attached to electronics, keys and backpacks. The device is connected via bluetooth to a free app and offers the added functionality for users to opt-in for Siri, Google or Alexa assistance with their item location.

For the 2021 calendar year, Tile is expected to report US$103 million (A$142.46 million) in revenue from hardware and subscription sales.

According to Life360, the companies have always shared a similar vision of offering users a way to “protect what matters most to them at all times”. Life360’s mission revolves around offering a range of safety services for families.

Life360 CEO Chris Hulls said the acquisition of Tile is the “most impactful deal in our company’s history” and commented on the pair’s long history.

“We had the platform of mobile phones covering people. They had the hardware device covering things,” he said.

“We almost joined the companies together many times in our history, and I have been close with Tile’s current CEO, CJ Prober, since he took the reins in 2018. So this is not an opportunistic deal that came about from our strategic review, but rather the acquisition I’ve been hoping to make for the better part of a decade.”

Tile CEO CJ Prober also spoke on the acquisition.

“This is a landmark day for Tile. This acquisition not only brings together two incredible teams and complementary missions and values, it paves the way for us to jointly build the world’s leading solutions for peace of mind and safety,” he said.

The acquisition is subject to certain conditions which are expected to be satisfied in the first quarter of 2022.

Equity raise

To fund the acquisition, Life360 is launching a $119.8 million non-renounceable entitlement offer and a $160.2 million institutional placement for a combined $280 million.

Under the institutional and retail entitlement offer, around 10 million new CDIs will be issued at an offer price of $12 each. Eligible securityholders may subscribe for one new CDI for every existing 15.64 CDIs held on November 25.

The placement will result in the issue of about 13.4 million new CDIs which represents about 4.5 million new shares.

Life360 expects to come out of the trading halt on November 25. Shares last traded at $13.51 on November 22.

360 by the numbers
More From The Market Herald
Irongate Group (ASX:IAP) - Fund Manager, Zach McHerron

" Irongate (ASX:IAP) to raise $50m for new properties

Irongate (IAP) is looking to raise $50 million to purchase a WA industrial park and a 50 per cent interest in an office

" Vintage Energy (ASX:VEN) enters trading halt amid capital raise

Vintage Energy (VEN) has requested a trading halt to finalise a potential capital raise.

" EBOS Group (ASX:EBO) to buy LifeHealthcare for $1.7b

New Zealand healthcare products distributor EBOS Group (EBO) has agreed to purchase Australian competitor LifeHealthcare for $1.167 billion.