Plexure Acquires TASK To Propel Global Platform Growth And Shareholder Offer Closes Oversubscribed

Shareholders of mobile engagement software company Plexure Group Limited (NZX/ASX:PX1) (Plexure) have overwhelmingly voted in favour of acquiring Australian-based transaction management platform Task Retail Pty Limited and its global subsidiaries (TASK). The pivotal vote took place in a special meeting of Plexure shareholders held at 3:00pm NZST on Friday, 24 September 2021.

The A$120 million acquisition was initially announced on August 16, 2021, conditional on shareholder approval, will propel both businesses into a phase of global growth and follows the global M&A trend of creating end-to-end platforms from the complementary capabilities of two businesses.

Plexure’s Chairman, Phil Norman, said “Shareholder support for the acquisition demonstrated confidence in Plexure’s future growth strategy, where M&A was initially highlighted as a potential avenue. TASK can deliver operational efficiencies for customers through their state-of-the-art enterprise point-of-sale (POS) solution and restaurant operations services, whereas Plexure’s customer data, analytics and personalisation capabilities can be the engine to grow customer revenues.”

He continued, “Combined, this offering delivers a fully integrated cloud based customer solution for clients, with the benefit of a shared data source and not having to juggle multiple third party integrations, with powerful API-led integration capabilities in each business. This will be highly attractive to high-frequency repeat purchase hospitality and retail organisations, as they pivot their digital journey to adjust to a rapidly changing environment that the global pandemic has fast-tracked.”

“While the implied multiple on the deal is healthy and Plexure’s shares reacted positively to the TASK acquisition announcement, we believe the stock remains undervalued considering its long runway for growth,” he said.

Mr Norman also added, “TASK represents more than just earnings growth for Plexure. We saw a company that was a natural fit, which delivers on a number of strategic priorities, including the strength of the joint proposition for customers, the ability to leverage shared functions and technology architecture to optimise efficiencies for the Group, as well as providing Plexure with access to a more diversified customer base which will significantly reduce Plexure’s current revenue reliance on our relationship with McDonald’s.”

Plexure’s global reach, which already extends into more than 60 countries through its strong relationship with McDonald’s, is positioned to increase significantly with the acquisition of TASK as a result of TASK’s extensive blue-chip client base across multi-national restaurant chains, food service, entertainment, and stadium venues across Australasia, North America and Europe.

Following completion of the acquisition, TASK CEO Daniel Houden will become CEO of Plexure and responsible for leading the merger of the two businesses.

Mr Houden, the son of TASK founders Kym and Jennifer Houden who established TASK 20 years ago said, “I am delighted by the support from Plexure shareholders and look forward to joining Plexure’s executive team to develop the opportunities in front of the combined business. Both teams have responded positively to this opportunity and are excited by the prospect for mutual knowledge sharing across portfolios and fostering stronger development capabilities which will ultimately improve our competitive positioning and our ability to cross-sell.”

Speaking to the Houden family acquiring a substantial holding in Plexure as part of the acquisition, Mr Houden said, “It was important to us to retain a stake in the joint business. We are deeply invested in growing the TASK business together with Plexure as a combined offering. The acquisition is a big win for the TASK team and our existing clients long-term.

“I see this very much as the combined entities being greater than the sum of their separate individual parts and both myself and the broader TASK team can’t wait to start working with the Plexure team,” he concluded.

Shareholder offer

Plexure is also pleased to announce that its NZ$5.2 million Shareholder Offer (Offer) has closed and was oversubscribed. The Offer received strong shareholder support with Plexure receiving applications well exceeding the offer size of NZ$5.2 million.

The Offer forms part of the approximately NZ$20.8 million capital raising announced on 1 September 2021.

Applications under the Offer will be scaled by Plexure at its discretion in accordance with the terms of the offer document and surplus application amounts will be refunded in accordance with the terms of the offer document

Settlement and allotment of the new shares issued under the Offer and under the Institutional Placement (as previously announced) are expected to occur on 29 September 2021.

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