Investment
Bravura circles competitor

The wealth management software firm has made a proposal to acquire another ASX-listed fintech that could value the latter at up to $170 million.

Bravura Solutions submitted a non-binding indicative proposal to acquire all shares of GBST Holdings for a $2.50 per share in cash minus a special dividend of 0.35 per share subject to approval.

GBST provides administration services to life insurers, stock brokers, wealth management businesses and institutions. Its clients include the big four banks, Baillieu Holst, Bell Porter and Morgans.

The $1.1 billion Bravura is more than eight times GBST's market cap.

Bravura's offer of $2.50 per share represents a 30% premium to GBST's 30-day volume-weighted average price.

With roughly 68 million GBST shares on issue, the offer could value GBST at up to $170 million.

The indicative non-binding offer is now in front of GBST's board.

Bravura is seeking an eight-week access to due diligence.

"GBST shareholders will receive a certain cash payment rather than remain exposed to a fluctuating share price and uncertainty over future dividends," the statement reads.

"GBST shareholders will avoid the uncertainty and costs associated with the significant investment to renew GBST's software platforms, including the E-volve program to bring Composer to modern standards and the changes required as part of the ASX CHESS transition to blockchain technology."

Bravura is also offering GBST investors an alternative - to take 35 cents in cash minus the special dividends and 0.4 Bravura shares for each GBST share that they own.

Clayton Utz is the legal advisor and Highbury Partnership the financial adviser to Bravura.

GBST's shares jumped 22.5% on the news from its previous close as at 11:54pm.

Read more: Baillieu HolstBell PorterBravura SolutionsClayton UtzGBST HoldingsHighbury PartnershipMorgans
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