ReadyTech (ASX:RDY) share price on watch following acquisition update

The ReadyTech Holdings Ltd (ASX:RDY) share price will be on watch on Wednesday following an acquisition update after the market close…

| More on:
changing asx share price from acqusition represented by man reaching out to touch acquisition sign

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The ReadyTech Holdings Ltd (ASX: RDY) share price will be one to watch on Wednesday.

This follows the release of an announcement after the market close on Tuesday.

What did ReadyTech announce?

This afternoon the education and workforce solutions software as a service (SaaS) company announced the successful completion of its $80 million acquisition of Open Office.

Open Office is a leading government and justice case management SaaS provider with strong customer bases in Australia, the United Kingdom, and Canada.

According to the release, the acquisition of Open Office involves an upfront consideration of $54 million and an earn out consideration of up to an additional $26 million. This will be funded from the proceeds of a capital raising in November and scrip.

The completion comes after shareholders voted overwhelmingly in favour of the acquisition at an extraordinary general meeting on Friday of last week.

The acquisition is anticipated to be low double-digit EPS accretive in FY 2021 on a pro-forma basis before synergies and excluding integration costs.

What now?

It will be business as usual for Open Office following the acquisition. ReadyTech advised that its experienced management are aligned with its vision, strategy and culture, and will be retained to further strengthen the expanded team.

Open Office's Managing Director, Phillip Simone, will become ReadyTech's Chief Executive of Government and Justice.

ReadyTech's Co‐Founder and CEO, Marc Washbourne, commented: "We're delighted to welcome the Open Office team to ReadyTech, and are excited by the growth potential we see for our expanded SaaS businesses. With growing revenues, strong margins, profitable operations and positive cashflows, ReadyTech is in a unique position to support our customers, build exciting careers for our people, and deliver sustainable growth in shareholder value."

Mr Simone added: "Open Office has a strong foothold into all levels of government in Australia. This is an exciting new chapter for us, as ReadyTech's proven capability will assist in driving deeper connections with an industry that has strong barriers to entry, leveraging the robust, long‐term relationships we already have with our customers."

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 30 April 2025

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

More on Mergers & Acquisitions

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Mergers & Acquisitions

IAG share price lifts off on strategic alliance approval

IAG shares are racing higher in Thursday’s sinking market.

Read more »

a group of business people sit dejectedly around a table, each expressing desolation, sadness and disappointment by holding their head in their hands, casting their gazes down and looking very glum.
Mergers & Acquisitions

This ASX 300 share is sinking 33% on takeover collapse fears

Is this takeover dead? Let's find out what is happening.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Mergers & Acquisitions

Why is this ASX 200 stock crashing 15%?

What has sent investors rushing to the exits? Let's find out.

Read more »

a woman drawing image on wall of big fish about to eat a small fish
Mergers & Acquisitions

Guess which ASX All Ords stock just received a takeover offer

A private equity firm has its eyes on this stock.

Read more »

Man with rocket wings which have flames coming out of them.
Mergers & Acquisitions

Guess which ASX stock just rocketed 21% on takeover news

Investors are piling into the ASX stock following a confirmed takeover offer.

Read more »

Miner looking at a tablet.
Mergers & Acquisitions

Gold Road shares surge 10% on $3.7 billion takeover offer

The ASX 200 gold stock is soaring after finding itself in the acquisition crosshairs.

Read more »

A corporate team or board stands together and looks out the window.
Technology Shares

WiseTech shares charge higher on $3.5b acquisition news

This tech stock is ending the week positively. But why?

Read more »

Two CEOs shaking hands on a deal.
Financial Shares

This ASX 300 stock is jumping on surprise merger news

This stock could be having a very big makeover.

Read more »