TPG to buy Australian automotive software firm Infomedia for over $420 million

Aug 6 (Reuters) - Australia's Infomedia IFM.AX said on Wednesday it had agreed to be acquired by the Asia-focused private equity arm of asset manager TPG TPG.O for an equity value of A$651 million ($421.33 million).

Under the deal, shareholders in the ASX-listed firm would receive A$1.72 per share, reflecting a more than 30% premium as compared to the stock's closing price on Tuesday.

Infomedia shares rose nearly 28% in early trade on Wednesday to reach A$1.6875, their highest level since September last year.

Infomedia provides "software as a service" (SaaS) solutions for the global automotive and motor service sector, offering clients data-driven solutions. It counts global carmakers BMW BMWG.DE, Audi, and Cadillac among its customers, according to its website.

The A$1.72 per-share offer sits close to what was offered for the firm back in 2022 by potential suitors from the United States.

The cash consideration reflects an enterprise value of A$579 million, the company said, adding that its board had endorsed TPG's bid.

TPG Asia co-head Joel Thickins said Infomedia would join the private equity fund's existing global software investments worth $24 billion in firms including Wind River and McAfee.

Infomedia is also allowed to pay its shareholders a fully-franked dividend of up to 2 Australian cents per share for fiscal 2025 and a further special dividend of up to 2.9 Australian cents apiece.

The deal needs Foreign Investment Review Board's (FIRB) approval and Infomedia said a shareholder vote should be held by mid-November.

($1 = 1.5451 Australian dollars)