Infomedia Valued at $651 Million in TPG’s $1.72 Per Share Takeover Deal
Infomedia Limited has struck a deal with TPG Capital Asia to be acquired at $1.72 per share, offering shareholders a 41% premium over recent trading prices. The scheme includes fully franked dividends, potentially raising the effective value to $1.74 per share for eligible investors.
- TPG to acquire 100% of Infomedia shares at $1.72 cash per share
- 41% premium to Infomedia's 3-month volume weighted average price
- Fully franked dividends up to 4.9 cents per share included
- Infomedia Board unanimously recommends the scheme
- Completion expected by late November 2025, subject to approvals
Deal Overview
Infomedia Limited (ASX, IFM), a technology company specialising in automotive software solutions, has entered into a scheme implementation agreement with TPG Capital Asia. Under the terms, TPG will acquire all issued shares of Infomedia at a cash price of $1.72 per share. This offer represents a substantial 41% premium to Infomedia's three-month volume weighted average price, signaling a significant value uplift for shareholders.
The transaction values Infomedia's equity at approximately $651 million and enterprise value at $579 million, reflecting confidence in the company's platform and growth prospects. The all-cash nature of the offer provides shareholders with immediate liquidity and certainty amid a volatile market environment.
Dividend Enhancements and Shareholder Benefits
In addition to the cash consideration, Infomedia is permitted to pay fully franked dividends totaling up to 4.9 cents per share before the scheme's implementation. This dividend payment enhances the effective value to shareholders who can utilise franking credits, potentially increasing the implied value to around $1.74 per share. The board has indicated that eligible shareholders could receive approximately 2.1 cents per share in additional benefits from these franking credits, depending on individual tax circumstances.
Board Endorsement and Conditions
The Infomedia Board has unanimously recommended that shareholders vote in favour of the scheme, subject to the absence of any superior proposal and the independent expert's confirmation that the scheme is in shareholders' best interests. Directors have committed to voting their own shares in favour of the transaction.
The scheme remains subject to customary conditions, including shareholder approval at a meeting expected in November 2025, court approval, and regulatory clearances from the Australian Foreign Investment Review Board and the Australian Competition and Consumer Commission. The scheme booklet, containing detailed information and the independent expert's report, is anticipated to be dispatched to shareholders by mid-October 2025.
Regulatory and Transaction Details
Notably, the scheme is not conditional on financing, reflecting TPG's strong financial position. The agreement includes break fees of $6.5 million payable by either party under certain termination circumstances, underscoring the commitment to the transaction's completion.
Infomedia plans to release its preliminary financial results for the fiscal year ending 30 June 2025 on 25 August 2025, with no change to prior revenue guidance. This release will provide further insight into the company's performance ahead of the shareholder vote.
Next Steps and Market Implications
Following shareholder and regulatory approvals, the scheme is expected to be implemented by late November 2025, at which point Infomedia shares will be delisted from the ASX. The transaction marks a significant milestone for Infomedia, delivering immediate value to shareholders and transitioning the company into private ownership under TPG.
Bottom Line?
As the scheme moves toward shareholder and regulatory approval, investors will be watching closely for any competing bids and the finalisation of the deal by year-end.
Questions in the middle?
- Will any superior proposal emerge before the shareholder vote in November?
- How will the upcoming FY25 results influence shareholder sentiment toward the scheme?
- What are the strategic plans for Infomedia under TPG's ownership post-acquisition?
