ASG beats DWS in battle to acquire SMS Management and Technology

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ASG beats DWS in battle to acquire SMS Management and Technology
Geoff Lewis, ASG

ASG has pulled the rug from under DWS after successfully outbidding the Melbourne company to acquire SMS Management and Technology for $124 million.

DWS announced plans to merge with SMS in February, which would have created one of the largest IT solutions providers in the country with $463.7 million in annual revenue and nearly 2000 Australian staff.

Perth-based rival ASG revealed in May that it was also in talks with SMS and put in a legally binding bid last week to acquire 100 percent of the company’s shares for $1.80 each in cash.

DWS’ offer was to acquire SMS for $1 in cash for each share plus 0.39 DWS shares. Both offers were valued at approximately $124 million, however, independent financial advisers recommended that the ASG offer was superior to DWS.

DWS was given three business days to submit a counter proposal superior to ASG’s. The matching rights period expired on Monday night, and DWS informed SMS that it would not submit a counter proposal.

“The board of DWS believes DWS is well positioned in its target markets and will continue to assess value accretive growth opportunities that align with its broader strategy,” said DWS chief financial officer Stuart Whipp.

SMS said it plans to accept the ASG offer, and will take the steps to wind up the DWS scheme implementation agreement.

ASG is yet to release a detailed glimpse of how SMS would operate under an acquisition.

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