Thomson Reuters Acquires Majority Stake in Pagero with Revised $789 Million Offer
Global content and technology company Thomson Reuters Corporation (NYSE: TRI) has announced a significant development in its strategic expansion plans, revealing the acquisition of approximately 53.81% of shares in Pagero Group. The move solidifies Thomson Reuters’ position as the majority shareholder in Pagero, following the purchase of shares from key stakeholders, including Summa Equity, Pagero’s CEO Bengt Nilsson, and various members of the management team and employees.
This news follows Thomson Reuters’ earlier announcement on January 11, 2024, regarding a recommended public tender offer to acquire 100% of Pagero’s shares. In a noteworthy development, Thomson Reuters has increased the offer price to SEK (Swedish krona) 50 per share, approximately around $789 million.
The independent bid committee of Pagero’s board of directors has unanimously recommended that all Pagero shareholders accept the revised offer.
Pagero, recognized as a global leader in e-invoicing and indirect tax solutions, operates through its Smart Business Network, facilitating the automated, compliant, and secure exchange of digital orders, invoices, and other business documents among customers, suppliers, and institutions.
Thomson Reuters’ enhanced ownership stake in Pagero aligns with the strategic partnership initiated in February 2023, focusing on a connected suite of global indirect tax, reporting, and e-invoicing capabilities. According to the firm, Pagero’s e-invoicing compliance capabilities complement Thomson Reuters’ ONESOURCE indirect tax offerings, providing customers with improved compliance and workflow automation benefits.
Steve Hasker, CEO and President of Thomson Reuters, expressed satisfaction with the agreement, stating, “This validates Thomson Reuters as the best home for Pagero and supports our shared vision to provide customers with automated, secure, and compliant tax solutions.”
The revised offer, valuing Pagero at approximately SEK 8.1 billion, represents a premium of 11.1% compared to Avalara’s public cash offer of SEK 45 and 145.9% compared to the volume-weighted average price of Pagero’s shares on Nasdaq First North in the 30 days before Vertex’s offer on December 13, 2023.
Thomson Reuters has declared the offer unconditional, signaling that the conditions for completion of the offer have ceased to apply. The acceptance period for the offer expires on February 9, 2024, at 17:00 CET, with settlement expected around February 16, 2024.
In response to the acquisition, Thomson Reuters emphasized its commitment to maintaining Pagero as a market solution for its community of indirect tax customers. The company reserves the right to postpone the settlement date, with any updates to be communicated through press releases in accordance with applicable laws and regulations.
Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.