Fintech Novatti announces capital raising for acquisitions including a stake in Reckon

ASX-listed Australian fintech Novatti Group has announced that it has entered into share purchase agreements for the acquisition, subject to completion of a capital raising, of an equity interest of at least approximately 15% in ASX-listed Reckon Limited. Reckon is a leading provider of accounting, expense management and scanning/print management software for over 100,000 SME clients globally.

Novatti entered into a trading halt yesterday morning (30 June 2021) to undertake a capital raising with part of the proceeds intended to fund the acquisition of the Reckon stake. The share purchase agreements for the acquisition will complete after completion of the capital raising. Under the share purchase agreements, Novatti will acquire the stake in Reckon at a price of $1.00 per Reckon share from institutional investors for a total amount of approximately $17 million (representing approximately 17 million Reckon shares).

Novatti Managing Director, Peter Cook, said, “We are delighted to have secured a strategic stake in ASX-listed Reckon.

“Reckon has a steady revenue and earnings profile, with over 100,000 customers in its business group. The business has strong cash flow generation, has significantly paid down its debt and historically paid sustainable dividends to its shareholders.

“We look forward to successfully completing the capital raising and joining the Reckon share register as a major shareholder.”