Hyro has revealed it will be acquired by global video software provider Kit Digital, for $17 million or $0.60 a share, ending months of speculation about the future of the company.
The digital services agency announced the deal, which is still subject to shareholder approval, to the ASX today.
The jewel in Hyro's crown is its Idaptive identity management software, which has seen it win deals with the likes of New Zealand’s Ministry of Education.
Hyro’s Idaptive business was formally separated from the company in September last year as the board considered selling off the asset.
The deal announced today would see it and three other Hyro subsidiaries absorbed into Kit Digital, an organisation with a market cap of over $US300 million servicing 2500 customers in 20 countries.
Talk of a Hyro takeover first surfaced in December last year when the company reported receiving a formal purchase offer from a then-unknown suitor.
The deal was announced as being “imminent” when the Hyro board met on December 19, but discussions stalled when Kit Digital failed to formalise a purchase agreement, an oversight it attributed to an internal reshuffle within the company.
Both companies were in the final stages of negotiations when the potential takeover was suspended. Hyro had been placed in a trading halt in expectation of a takeover announcement in late March.
Hyro CEO Anthony Poiner said the feedback from shareholders so far had been positive. An official announcement will be made following Hyro’s annual general meeting in a month.
Hyro currently counts 180 staff across five offices. It will form the largest of Kit Digital’s entities locally, including the recently-acquired cloud video provider ioko.
Poiner told CRN integration plans had not been discussed in detail. He said current clients, partners and contracts would be honoured.
“This is about accessing market growth and bringing capability together, it’s not an attempt at cost reduction,” he said. “I think it’s very exciting for our staff, as it provides a broader base of opportunities for them, and I think it’s exciting for our customers because it allows us to not only bring a broader product base, but gives us the opportunity to tap into exciting and innovative global markets."