Thomson Reuters Launches Tender Offer for Pagero in SEK 6.4 Billion Deal
Thomson Reuters Corporation, a leading global provider of news and information-based tools, has recently announced its intention to acquire Pagero Group AB in a public tender offer. The deal, valued at approximately SEK 6.4 billion, aims to acquire all the shares of Pagero at SEK 40 per share, subject to acceptance from over 90 percent of Pagero’s shareholders. This move is expected to enhance Thomson Reuters’ existing suite of indirect tax and reporting tools by integrating Pagero’s e-invoicing compliance capabilities.
Pagero Acquisition to Strengthen Thomson Reuters’ Indirect Tax Tools
Pagero Group AB, operating in the e-invoicing and indirect tax solutions space, has established itself as a key player through its Smart Business Network. This network facilitates the exchange of digital business documents between businesses and institutions. With the acquisition of Pagero, Thomson Reuters aims to leverage the company’s expertise in e-invoicing compliance and strengthen its suite of indirect tax tools. As more countries adopt real-time digital tax regimes, the demand for e-invoicing solutions is on the rise, making Pagero an attractive addition to Thomson Reuters’ resources.
CEO Hasker Highlights Growth Potential in Pagero Partnership
Steve Hasker, President and CEO of Thomson Reuters, is optimistic about the strategic and cultural alignment between the two companies. He believes that combining Pagero’s e-invoicing capabilities with Thomson Reuters’ existing ONESOURCE indirect tax offerings will unlock significant growth potential. The partnership between the two companies, announced in February 2023, has laid the foundation for this acquisition. Hasker’s confidence in the synergies between Thomson Reuters and Pagero underscores the strategic value they see in each other.
Thomson Reuters’ Offer for Pagero Surpasses Previous Bids
Thomson Reuters’ tender offer of SEK 40 per share for Pagero represents an 11.1 percent premium over Pagero’s closing price on January 10, 2024. Notably, this offer surpasses a previous bid made by Vertex, Inc. in December 2023. The premium offered by Thomson Reuters demonstrates the company’s determination to acquire Pagero and reflects their belief in the value that Pagero adds to their business. This aggressive bid positions Thomson Reuters as a frontrunner in the acquisition race.
Acceptance Period for Thomson Reuters’ Offer to Begin on January 12, 2024
Thomson Reuters expects the acceptance period for its tender offer to commence on January 12, 2024, and conclude on February 9, 2024. The settlement is anticipated to occur around February 16, 2024, subject to meeting the necessary conditions. Importantly, the acquisition is not contingent on securing financing, as Thomson Reuters has the required funds available. The company has appointed Morgan Stanley & Co LLC as its financial advisor and Linklaters as the legal advisor for the transaction, further emphasizing their commitment to a smooth acquisition process.
Analyst comment
Positive news: Thomson Reuters Launches Tender Offer for Pagero in SEK 6.4 Billion Deal
Short analysis: The acquisition of Pagero by Thomson Reuters is expected to strengthen Thomson Reuters’ suite of indirect tax tools and enhance its e-invoicing compliance capabilities. This move positions Thomson Reuters as a frontrunner in the acquisition race and demonstrates their determination to expand in this area.
