August 26, 2024 (Globalinvestorideas.com Newswire) Globalinvestorideas.com, a go-to platform for big investing ideas, including tech stocks reports on trading for Givex Corp. (TSX: GIVX) (OTCQX: GIVXF), a technology solutions company.
The stock made today’s TSX top percentage gainer on acquisition news. The stock is currently trading at $1.4600, up 0.4900, gaining 50.5155% on over 1.5 Million shares.
Givex announced today that it has entered into a definitive arrangement agreement (“Arrangement Agreement”) with Shift4 Payments, Inc. pursuant to which Shift4 has agreed to acquire all of the issued and outstanding shares of Givex, by way of a statutory plan of arrangement (“Plan of Arrangement”) under the Business Corporations Act (Ontario) . Under the terms of the Arrangement Agreement, holders of Givex Shares will receive C$1.50 in cash for each Givex Share held (“Consideration”), which implies an aggregate equity value for Givex of approximately C$200 million, on a fully diluted, in-the-money, treasury method basis. The Consideration represents a 64% premium to the 20-day volume-weighted average price (“VWAP”) of the Givex Shares on the Toronto Stock Exchange for the period ended August 23, 2024, the last trading day prior to the announcement of the Transaction.
SHIFT4 TO ACQUIRE GIVEX IN ALL-CASH TRANSACTION VALUED AT C$200 MILLION
Consideration of C$1.50 per share, representing a 64% premium to Givex’s 20-day VWAP (CNW Group/Givex Corporation)
SHIFT4 TO ACQUIRE GIVEX IN ALL-CASH TRANSACTION VALUED AT C$200 MILLION Consideration of C$1.50 per share, representing a 64% premium to Givex’s 20-day VWAP (CNW Group/Givex Corporation)
“The Givex Team looks forward to joining the Shift4 family and bring our enterprise gift card capabilities and loyalty programs to hundreds of thousands of new customers,” says Don Gray, CEO of Givex. “By combining Shift4’s end-to-end payment solution with our value-added engagement services, we can deliver an unparalleled package to both of our customer bases.”
“Givex has a considerable footprint around the world which will dramatically increase Shift4’s overall customer base” states Shift4 President Taylor Lauber. “At the same time, their gift card and loyalty solutions are second to none and will add significant value for our customers, creating stickier relationships and enhancing our overall value proposition.”
TRANSACTION HIGHLIGHTS
The Consideration represents premiums of (i) 64% over the 20-day VWAP of the Givex Shares on the TSX for the period ended August 23, 2024, and (ii) 55% over the closing price of the Givex Shares on August 23, 2024;
All-cash offer crystalizes value for Givex Shareholders and provides them with full liquidity and certainty of value;
Eliminates the execution risks associated with Givex’s long-term business plan and delivers a substantial premium return as compared to the uncertainties of remaining a Givex Shareholder;
Givex’s board of directors (“Board”), after receiving a unanimous recommendation from a special committee comprised of independent directors of Givex (“Special Committee”), has unanimously approved the Transaction and recommend that Givex Shareholders vote in favour of the Transaction;
Givex’s directors, executive officers and significant shareholders, which together represent 57.4% of the Givex Shares outstanding, have entered into voting support agreements pursuant to which they have agreed to vote their Givex Shares in favour of the Transaction. The voting support agreements terminate in the event the Arrangement Agreement is terminated, including if the Arrangement Agreement is terminated to allow the Company to accept a “superior proposal”; and
The Transaction is subject to customary closing conditions, including the approval of Givex Shareholders. The Consideration will be funded by Shift4’s existing cash on hand.
Recent news
https://ca.finance.yahoo.com/news/shift4-acquire-givex-cash-transaction-123000058.html
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