thedocyard (ASX:TDY) - Founder & CEO, Stuart Clout - The Market Herald
Founder & CEO, Stuart Clout
Source: thedocyard
  • thedocyard (TDY) has announced it plans to merge with Ansarada to form a leading global SaaS company in deal and information governance technology
  • The two companies have signed a heads of agreement for thedocyard to acquire 100 per cent of Ansarada
  • Along with the merger, TDY also announced plans for a $45 million capital raise, but existing shares may be consolidated on a 10 for 1 basis
  • Following the capital raise, the merged companies would have a market cap of approximately $125 million
  • Shares in thedocyard have been suspended from trading, so it's unknown how shareholders reacted to the news
  • Shares in TDY last traded for 19 cents each on August 14

Cloud-based software company thedocyard (TDY) has announced plans to merge with fellow tech company Ansarada.

Together the two businesses would form "a leading global SaaS company in deal technology and information governance technology".

Under the merger, thedocyard would acquire 100 per cent of Ansarada, which isn't ASX-listed.

The two companies have signed a heads of agreement, with a view of completing the entire transaction by December, 2020.

Along with the merger, TDY also announced plans for a $45 million capital raise, with existing shareholders invited to participate.

But, the company is likely to undertake a share consolidation, on a 10 for 1 basis, meaning at the end of the merger (and cap raise) existing TDY shareholders will have an 18 per cent stake in the new company.

Ansarada stakeholders will walk away with a 47 per cent stake in the new company and the capital raise investors will have a 35 per cent holding.

The issue price of thedocyard shares under the capital raise is expected to be between 15 cents and 17 cents per share on a pre-consolidation basis.

Following the merger and associated cap raise, the new company would have a market cap of approximately $125 million. Currently, thedocyard has a market cap of $27.8 million.

Commenting on the news, Founder and CEO of thedocyard, Stuart Clout, said he was thrilled to announce the merger.

"With this transaction, our reach will be greater, our opportunity to solve more of our customers problems enhanced, and our vision to be the trusted technology partner to corporates, advisors and funds is accelerated," he said.

"The combination of our workflow, deal and board management solutions, with Ansarada’s trusted brand and position in the transaction dataroom market is set
to make the merged business a global force in the information governance technology market," he added.

But following the merger announcement, thedocyard has been suspended from trading.

The ASX said in a statement it had temporarily removed the company from official quotation as the merger "could result in a change of its activities."

thedocyard will now need to satisfy a number of requirements in order to be returned to official quotation.

TDY's shares last traded for 19 cents each on August 14.


TDY by the numbers
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