Australian IT services provider ASG has successfully outbid rival DWS for fellow reseller SMS Management Technology, after DWS last night took itself out of the race.
ASG threw down a challenge to DWS last week when it formalised a $1.80 per share cash offer for SMS.
SMS had been close to signing a deal to sell itself to DWS before ASG revealed its intention to swoop in.
DWS was given three business days to make a counter offer, but last night revealed it no longer wanted to pursue the acquisition.
The SMS board had recommended the ASG bid over DWS' $1 in cash and 0.39 shares for each SMS share, for a total of $1.66 per share, offer. Both the ASG and DWS offers value SMS at around $124 million.
“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,” DWS said in a statement.
SMS last night said it intended to accept the ASG offer and would now wind up the scheme implementation agreement it had signed earlier this year with DWS.
The DWS-SMS merger would have created one of Australia's largest IT services companies, with nearly 2000 staff and over $463 million in revenue.
ASG is yet to detail its plans for SMS.