Financial software vendor Bravura Solutions yesterday rejected a takeover deal from an undisclosed third party after the board deemed that the proposal significantly undervalued the company.
Bravura Solutions was offered 17.5 to 20 cents per share for the company, with the deal subject to a mandatory due diligence process.
In a statement to the Australian Stock Exchange (ASX) issued yesterday, Bravura said that the proposal undervalued the company based on its significant improvement in earnings before interest, taxes, depreciation and amortisation (EBITDA) as well as operating cash flow and its own recent acquisition of UK software firm Mutual Fund Technologies in June.
"The underlying value of the company is not truly reflected in the current share price," the company said in the announcement.
Bravura Solutions also underwent a management restructure in the early part of the year, with now CEO Simon Woodfull replacing Iain Dunston, following his resignation.