US private equity firm makes $315m cash bid for Mincom

Stan Beer
Thursday, 18 January 2007 11:46

IT Industry - Strategy

Australia's largest home grown software company Mincom Limited will be acquired by US-based private equity firm Francisco Partners in an all cash transaction valued at A$315 million. The sale means that ownership of one of Australia's most important international IT players will pass into foreign hands.

Mincom, which a global enterprise asset management player, has more than 1,200 staff in 18 offices across Australia, North America, South America, South East Asia, Africa, and Europe.

An unlisted public company, Colonial First State and Caterpillar are the only major institutional shareholders of Mincom, with 28% and 11.2% ownership, respectively. The remaining shareholders are primarily current or former employees.

“This transaction is exciting news for all of our shareholders, many of whom are current or past employees, allowing them to realise the value of their investment at a substantial premium to the most recently traded share price for Mincom. The board unanimously supports this transaction and recommends that shareholders vote in favour of the acquisition,” said Bob Savage, Chairman of Mincom.

 “This acquisition represents strong endorsement of our strategy, market leadership and management team,” said Richard Mathews, Chief Executive Officer of Mincom.

“We are pleased to be working with Francisco Partners who have exceptional knowledge and expertise in the global technology marketplace. This investment will enable Mincom to pursue an aggressive growth strategy and reaffirms Mincom’s commitment to providing its customers and partners with market leading products.”

“While this will be the end of an era for many of the shareholders, it will be business as usual for the day-to-day operations of Mincom. No changes to the management team, company name, head office location, or product strategy are anticipated, nor will there be any impact on our customers. We certainly look forward to working with Francisco Partners and utilizing their experience and financial strength to execute on our strategic vision,” Mr Mathews said.

“We are long-term investors in global technology companies who have, and are committed to maintaining, leadership in their markets,” said Andrew Gray, Managing Director, of Francisco Partners.

“We have been impressed with Mincom’s products, client base and management team, all of which have contributed to building one of the most formidable Enterprise Asset Management companies in the world.  We are excited by this opportunity to partner strategically with the management team and continue building on the success of the business,” Mr Gray said.

The Board of Mincom has unanimously recommended that shareholders vote in favour of the acquisition in the absence of a superior proposal. The transaction is expected to close within the next 90 days.