Solutions provider ASG Group has revealed the mystery party behind long-running acquisition talks was aerospace, security and IT giant Lockheed Martin, but a proposed buyout has failed.
Lockheed Martin first put in a bid for the Perth-based company in October last year, at $1.03 per share, valuing the company at $177 million, a more than 30 percent premium.
Earlier this week it revised its offer to $140 million.
In revealing Lockheed Martin as the suitor yesterday, ASG said it had rejected the bid as inadequate after negotiations reaching an impasse and all talks were now off. It said, however, it was still in discussions for a buyout with several other parties.
ASG has a market cap of around $86.8 million. In its fiscal year 2012, net profit fell to $14.6 million from $15.7 million the previous year.
The company is currently undergoing a restructure aimed at refocusing on cloud services. Last month that restructure resulted in the reduction of 50 staff at a cost of $1 million.
The company’s share price fell 8 percent to $0.42 following the announcement on Friday.