Federal Court Greenlights $5.90 per Share Acquisition of Dropsuite by NinjaOne
The Federal Court of Australia has approved the scheme of arrangement for NinjaOne’s acquisition of Dropsuite, setting the stage for a $5.90 per share cash payout to shareholders and imminent suspension of trading on the ASX.
- Federal Court approves acquisition scheme
- Scheme expected to become effective on 14 May 2025
- Dropsuite shares to be suspended from ASX trading
- Shareholders to receive $5.90 cash per share
- Payment anticipated by 30 May 2025
Court Approval Clears Path for Acquisition
In a significant development for the Australian cloud software sector, the Federal Court of Australia (Victoria Registry) has granted approval for the scheme of arrangement under which NinjaOne Australia Pty Ltd will acquire all issued shares of Dropsuite Limited. This legal endorsement marks a critical milestone, allowing the acquisition to proceed toward completion.
Trading Suspension and Scheme Effectiveness
Following the court’s approval, Dropsuite expects to lodge the court orders with the Australian Securities and Investments Commission (ASIC) on 14 May 2025. Upon lodgement, the scheme will become legally effective, triggering the suspension of Dropsuite shares from trading on the ASX. This suspension signals the transition from public company status as the acquisition moves to finalisation.
Shareholder Consideration and Timeline
Dropsuite shareholders are set to receive a cash payment of $5.90 for each share held as of the scheme record date, currently scheduled for 7:00pm Melbourne time on 16 May 2025. The payment is expected to be made on 30 May 2025, completing the financial transaction for shareholders. While these dates provide a roadmap, the company notes they are indicative and subject to change, with further announcements to clarify any adjustments.
Strategic Implications for Dropsuite and NinjaOne
Dropsuite, known for its cloud backup and recovery solutions, will now integrate into NinjaOne’s broader IT management platform. This acquisition could enhance NinjaOne’s service offerings and market reach, while providing Dropsuite shareholders with a premium exit price. The deal underscores ongoing consolidation trends in the cloud software industry, where scale and integrated solutions are increasingly valued.
Looking Ahead
As the scheme moves toward implementation, market participants will be watching closely for the final confirmation of scheme effectiveness and the subsequent payment to shareholders. The suspension of Dropsuite shares from the ASX will also mark a notable shift in the company’s public market presence, with potential ripple effects for competitors and investors in the cloud technology space.
Bottom Line?
With court approval secured, Dropsuite’s acquisition by NinjaOne is poised to reshape its market trajectory and shareholder returns.
Questions in the middle?
- Will the scheme record and payment dates hold firm amid regulatory processes?
- How will NinjaOne integrate Dropsuite’s technology and customer base post-acquisition?
- What impact will this deal have on competition within the Australian cloud software market?
