Citadel Group Ltd <CGL.AX> on Monday said an entity owned by the country's biggest private equity firm Pacific Equity Partners (PEP) proposed to acquire the Australian software company for A$448.6 million ($326.49 million).
Tech-focused companies are seen as winners in the COVID-19 era as the shift to working from home drives people to leverage technology to get things done efficiently and remotely.
The deal will take place via a scheme of arrangement, with the offer representing a premium of 43.2% to Citadel's closing price on Friday.
Citadel Chairman Peter Leahy said its customers will benefit from access to a broader product suite and service capability with PEP's backing.
The board has recommended that shareholders vote in favour of the deal in the absence of a superior bid, the Canberra-based information technology services provider said.
The company, which posted a 25% jump in annual core earnings last month, said it plans to declare a special dividend of up to 15 cents per share that will enable shareholders to receive up to 6.4 cents of franking credit benefits.
($1 = 1.3740 Australian dollars)
(Reporting by A K Pranav in Bengaluru; Editing by Jacqueline Wong and Sherry Jacob-Phillips)
