Pushpay takeover offer is bottom dollar, valuation finds

The Pushpay takeover offer was pitched at $1.34/share. Photo/File

An independent valuation of Pushpay Holdings has found the takeover offer falls within the recommended range, but only barely.

Grant Samuel & Associates, an adviser appointed by Pushpay to assess the offer, has valued the church-management software company in the range of $1.33 to $1.53 per share.

Sixth Street and BGH Capital have entered a scheme of arrangement to buy the company for $1.34 per share, just one cent above the lowest end of the valuer’s acceptable range.

Some shareholders expressed outrage when the board recommended the offer, saying it undervalued the company.

The acquisition price was 16.7 times underlying earnings, based on the midpoint of Pushpay’s guidance of US$56 million (NZ$86m) in the 2023 financial year.

Pushpay chairman Graham Shaw said the board had explored options for more than six months, including staying listed, and this was the best offer.

“It provides shareholders with an opportunity to accelerate a capital return, while also mitigating the risks and uncertainties that are otherwise involved in executing Pushpay’s strategic plan over time,” he said in a statement.

The board of directors said $1.34 was “an attractive price” and has unanimously recommended shareholders vote in favour of the scheme of arrangement.

A meeting to vote on the scheme will be held on March 3 in Auckland and online.