DWS bows out of bid for SMS M&T

By on
DWS bows out of bid for SMS M&T

Decides against making counter offer.

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.

Copyright © iTnews.com.au . All rights reserved.
Tags:

Most Read Articles

Log In

Username:
Password:
|  Forgot your password?