Listed on both the NZX and the ASX, Pushpay provides a donor management system to the faith sector, education providers, and non-profit organisations located primarily in the US and other jurisdictions

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Pushpay agrees to go private in $898m deal. (Credit: Pete Linforth from Pixabay)

Pushpay, a New Zealand based fintech company, has agreed to a takeover offer from Sixth Street and BGH Capital Consortium at an implied equity value of $898m and an enterprise value of $933m.

In this connection, the parties have entered into a scheme implementation agreement.

Listed on both the New Zealand Stock Exchange (NZX) and the Australian Securities Exchange (ASX), Pushpay provides a donor management system to the faith sector, education providers, and non-profit organisations located mainly in the US and other jurisdictions.

The company’s donor management system includes donor tools, a church management system (ChMS), finance tools and a custom community app, and video streaming solutions.

Its shareholders are being offered NZ$1.34 per share by Pegasus Bidco, which is representing the Sixth Street/BGH Consortium.

Currently, the entities related to Sixth Street and BGH Capital hold a combined stake of 20.34% in Pushpay.

Pushpay’s board has unanimously recommended its shareholders vote in favour of the deal. This is subject to the offer price being within or more than the independent adviser’s valuation range for the company’s shares and in the absence of a superior proposal.

The fintech company said that after a comprehensive process of reviewing expressions of interest and evaluating a range of other potential offers, its board determined the offer from Pegasus Bidco to be compelling and providing risk-adjusted value and certainty for shareholders.

Pushpay chairman Graham Shaw said: “Following the receipt of various unsolicited, non-binding expressions of interest to acquire the Company, the Board formed an Independent Committee, appointed external advisers and undertook a comprehensive process, with a view to exploring opportunities to enhance shareholder value.”

“In considering the options, including the possibility of continuing to implement the Company’s growth strategy as a publicly listed company, the Board adopted a long-term view of the risks and rewards of various alternatives. After a thorough assessment, the Board believes that the Sixth Street / BGH Consortium Scheme proposal currently represents the most compelling value for shareholders.”