TPG Takeover Offer Raises Questions on Infomedia’s Growth Path
Infomedia Ltd reported solid FY25 results with revenue up 4% to $146.5 million and net profit rising 32%, driven by key product growth and a strategic AI acquisition. The company also recommended shareholder approval of a premium takeover offer from TPG Capital.
- 4% revenue growth to $146.5 million in FY25
- 32% increase in net profit to $16.7 million
- Acquisition of 50% stake in European AI firm Intellegam
- Board recommends TPG Capital’s $1.72 per share takeover bid
- Final dividend declared at 2.0 cents per share, fully franked
Strong Financial Performance Amid Strategic Transformation
Infomedia Ltd has delivered another year of steady growth in its FY25 results, reporting a 4% increase in revenue to $146.5 million and a 32% jump in net profit to $16.7 million. This marks the company’s 13th consecutive year of revenue growth, underscoring the resilience of its SaaS and DaaS business model within the automotive data ecosystem.
The growth was primarily driven by strong performances from Infomedia’s Superservice and Microcat product lines, which continue to gain traction across global markets. However, the company prudently paused growth in its Infodrive CX platform to rebuild the underlying technology for international expansion, signaling a focus on sustainable, scalable innovation.
Strategic AI Investment and Operational Enhancements
A highlight of FY25 was Infomedia’s acquisition of a 50% stake in Intellegam GmbH, a European AI startup. This move is designed to accelerate the integration of artificial intelligence capabilities into Infomedia’s existing product suite and to develop new AI-driven offerings. The acquisition aligns with the company’s multi-year transformation strategy aimed at enhancing product innovation and global scaling.
Operationally, Infomedia strengthened leadership in its EMEA and Americas regions, renewed major OEM contracts with price increases, and achieved ISO 27001 – 2022 certification for cybersecurity across its product suite. These initiatives reflect a commitment to operational excellence and data security, critical factors in maintaining customer trust and competitive advantage.
Takeover Bid and Shareholder Returns
On 6 August 2025, Infomedia announced a binding Scheme Implementation Agreement with TPG Capital, under which TPG offers to acquire 100% of Infomedia shares at $1.72 per share, representing a significant premium to the pre-announcement share price. The Board unanimously recommends shareholders vote in favor of the scheme, subject to no superior proposal emerging and an independent expert’s endorsement.
Alongside the takeover bid, Infomedia declared a fully franked final dividend of 2.0 cents per share, continuing its track record of shareholder returns. The dividend record date is set for 1 September 2025, with payment scheduled for 18 September 2025.
Outlook and Market Positioning
Looking ahead to FY26, Infomedia projects revenue between $152 million and $159 million, driven by ongoing investments in global expansion, AI integration, and product innovation. The company’s strong balance sheet, with $85 million cash on hand and no debt, provides flexibility to pursue strategic growth opportunities.
While the acquisition accounting for Intellegam remains provisional and the Infodrive CX rebuild introduces some uncertainty, Infomedia’s disciplined cost management and recurring revenue model position it well to navigate these transitions. The market will be watching closely as the company progresses through the TPG takeover process and executes its next growth phase.
Bottom Line?
Infomedia’s FY25 results and strategic moves set the stage for a pivotal year ahead, with the TPG takeover and AI integration poised to reshape its growth trajectory.
Questions in the middle?
- Will shareholders approve the TPG Capital takeover bid, and could a rival offer emerge?
- How will the Infodrive CX technology rebuild impact Infomedia’s international expansion timeline?
- What new AI-driven products will emerge from the Intellegam partnership, and how quickly?
