The Pushpay Holdings Ltd (ASX: PPH) share price is up around 5% as investors consider the speculation that there could be more takeover interest.
Pushpay describes itself as a provider of donor management systems, including donor tools, finance tools and a custom community app, a church management system and video stream services for the faith sector, non-profit organisations and education providers.
Could a Pushpay takeover still happen?
According to reporting by the Australian Financial Review, private investment group BGH is supposedly back with a revised bid to win over the board and shareholders.
The AFR‘s Street Talk said that the offer could value Pushpay at more than $1.2 billion.
BGH Capital has already built a 20% stake in the business thanks to a co-operation agreement with offshore investment outfit Sixth Street.
Early response
In response to this speculation, in an ASX announcement the company noted the media report saying that it’s “aware of media speculation that a shareholder consortium has submitted a revised proposal to acquire the company at a premium” to Friday’s closing Pushpay share price.
The company confirmed that it had received a revised indicative non-binding proposal and is continuing to assess whether there is potential for a transaction that is in the best interests of shareholders as a whole.
Management said that there is no certainty that a transaction will proceed or as to the pricing or timing of any transaction.
Pushpay will continue to keep the market updated, as it’s required to under its continuous disclosure obligations.
My thoughts about the Pushpay share price
Pushpay keeps winning new customers. It recently announced that it had won over the US Army Chaplin Corps as a customer. It was the largest software-only agreement to date for Pushpay.
The addition of the US Army Chaplin Corps as a customer represents an opportunity for future expansion of its solutions into a variety of public service organisations.
Pushpay pointed out that US Army Chaplins support and provide guidance to soldiers and their families across all religious faiths, which includes more than 1 million active and reserve soldiers, as well as retired soldiers.
If it doesn’t get acquired by BGH, I think the business has a very promising future.
