Nitro (ASX:NTO) to raise $140m for major acquisition

Nitro is making a major acquisition…
The post Nitro (ASX:NTO) to raise $140m for major acquisition appeared first on The Motley Fool Australia. –

The Nitro Software Ltd (ASX: NTO) share price won’t be going anywhere on Wednesday.

This morning the global document productivity software company requested a trading halt.

Why is the Nitro share price halted?

The Nitro share price was halted this morning after the company announced a major new acquisition and accompanying equity raising.

According to the release, the company has entered into a binding agreement to acquire Connective NV for an enterprise value of €70 million (~US$81 million or ~A$110 million).

Connective is Belgium’s leading eSign software-as-a-service (SaaS) business, with a fast-growing market share in France and customers in 11 other European countries.

Its business focuses on serving the needs of enterprise and government customers that require high levels of trust, security, and regulatory compliance, while also offering expansive electronic identity (eID) support and a powerful document workflow automation solution.

Connective is forecast to achieve annual recurring revenue (ARR) of ~US$6.1 million and revenues of ~US$7.1 million in calendar year 2021.

“Milestone moment”

Management believes the acquisition cements Nitro’s position as a global eSign and document productivity SaaS platform.

Nitro’s Co-Founder and Chief Executive Officer, Sam Chandler, commented: “This is a milestone moment in Nitro’s growth story. With the acquisition of Connective, Nitro is well placed to become the third global player in the fast-growing enterprise eSign market.”

“Connective adds highly secure, enterprise-grade eSigning, eID and workflow capabilities to Nitro’s existing eSign solutions at a time where increased trust, security, and regulatory compliance are vital to business success. With data security at a premium, the future of eSigning is built around hightrust eID-driven solutions, and this acquisition positions Nitro to become a global leader,” he added.

Equity raising

In order to fund the acquisition, Nitro is raising A$140 million via a fully underwritten equity raising. This comprises an $80 million institutional placement and a $60 million entitlement offer.

These funds will be raised at $3.43 per new share, which represents a 10.7% discount to the Nitro share price at the close of play on Tuesday.

The post Nitro (ASX:NTO) to raise $140m for major acquisition appeared first on The Motley Fool Australia.

Should you invest $1,000 in Nitro right now?

Before you consider Nitro, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Nitro wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Brokers rate these ASX growth shares as buys

Zip (ASX:Z1P) and these ASX tech shares are rated as buys

2 exciting small cap ASX tech shares analysts love

Why Life360, Nitro, Reliance Worldwide, and Uniti shares are charging higher

Why is the Nitro Software (ASX:NTO) share price on the rise on Wednesday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!