Australian private equity firm Potentia Capital Management through its vehicle Admetus has paid $92.2 million ($2.10 a share), for an 18.45 per cent stake in Vista Group after deals done over the weekend.

Potentia is in discussion with the Vista board, although it is understood a full offer is not in the wings.

A further 10.60 million shares in the listed cinema software specialist will be acquired from Jarden Securities, with settlement due on Friday, Admetus said in a filing with the NZX.

The deals were arranged mostly through Jarden.

The holdings, together with on-market trades today, are expected to take Potentia to a 19.9 per cent stake.

At $2.10, the price was a 26c or a 14 per cent premium to Friday’s closing price.

The offer price values Vista at 40 times its 2024 earnings before interest, tax, depreciation and amortisation, and values the company in total at around $500m.

Admetus also said it had entered an agreement to pay sellers of Vista stock an “escalation payment” should it decide to take the company over at a higher price.

When ownership reaches 20 per cent, certain obligations under the New Zealand rules take effect regarding full and partial takeovers.

The main sellers were Spheria Asset Management, a smaller company investment specialist, and WAM (Wilson Asset Management), an ASX-listed investment company.

Both parties sold their entire stakes.

The company was founded by Murray Holdaway in 1996.

Holdaway started Madison Systems, which became New Zealand’s largest IBM reseller.

After Madison was involved with two cinema system developments, Holdaway formed Vista, which went on to dominate the global market for movie theatre management software.

Vista debuted on the NZX in 2014 at $2.40 a share, giving it a market cap at the time of $191m.

On Friday, Holdaway received the New Zealand Hi-Tech “Flying Kiwi” award at the New Zealand Hi-Tech Awards.

“As co-founder of Vista Group, Murray played a leading role in taking Vista Group from a small, New Zealand-founded company to the largest cinema software company in the globe with a leading global market share,” the company said.

“Murray led Vista Group to international success, with offices established in 10 locations worldwide, customers in over 110 countries, and eight software acquisitions to date in international territories.”

In 2015, Vista Group was named the IPO of the year and in 2016 Vista Group won the PwC Hi-Tech Company of the Year award at the New Zealand Hi-Tech Awards.

Source: https://www.nzherald.co.nz/