QANTM Intellectual Property Ltd (ASX:QIP) and Xenith IP Group Ltd (ASX:XIP) enter into merger of equals, with QANTM shareholders owning 55% and Xenith shareholders 45% of the merged entity.
Implementation through a Scheme of Arrangement, with Xenith shareholders to receive 1.22 QANTM shares for each Xenith share held. Implementation expected in April 2019.
Creates a group of industry leading, independent IP services businesses with 349 professionals in Australia, New Zealand and Asia.
Merged Group FY18 pro forma EBITDA of $45.2 million, with the merger expected to achieve cost synergies of $7 million per annum to be fully realised at the end of year three, generating earnings per share accretion for both Xenith and QANTM shareholders.
Increased scale enables accelerated expansion into the high-growth Asian region, leveraging existing presence, and enhances the ability to drive innovation and efficiency through investment in world-class technology platforms.
Further details relating to this proposed merger are available below.