Cloud-based talent acquisition provider LiveHire has become the target of an on-market acquisition by AKKR-backed Humanforce, an SaaS firm providing workforce management solutions.
The 4.5 cents per share offer provides an 87.5 per cent premium on LiveHire’s pre-offer price, and a 158.1 per cent premium on the undisturbed 120-day volume weighted average price.
The development comes after LiveHire previously advised the market it had been reviewing capital structure and ownership options, culminating in a search for a new strategic investor or owner.
In a statement to the market announcing the offer, LiveHire said it had struggled to attract the new equity or debt funding it needed to continue the development and commercialisation of its software.
“Any additional equity funding may have a dilutionary effect on current LiveHire shareholders and any additional debt funding may involve restrictive covenants or unfavourable terms for LiveHire, including high-interest rates, both of which may restrict LiveHire’s financing and operating activities.”
The company secured debt funding of $2.3 million from two separate institutions in December 2023, but both loans came with a 19 per cent interest rate.
LiveHire chair Andrew Rutherford encouraged shareholders to accept the offer.
“Humanforce’s offer provides certainty of value for LiveHire shareholders and enables them to realise value for their investment at a significant premium to LiveHire’s recent trading price,” he said.
Humanforce chief executive Clayton Pyne said the acquisition would help the company keep its software at the forefront of industry.
“LiveHire’s best-of-breed ATS, recruit CRM, direct sourcing and AI-powered talent pooling products are highly complementary and will enable Humanforce to power innovative and intelligent hiring, candidate engagement, shift filling, skills matching and mobility models,” he said.
“We are excited that by adding Talent to Humanforce’s current HCM suite of Workforce Management, HR, Payroll and Wellbeing, businesses will now be able to augment their workforce quickly, intelligently and compliantly – across internal, contingent, gig and staffing agency labour pools – to address dynamic labour demands.”
Humanforce is an Australia-founded company established in 2004 and incorporated in 2017, which operates a software as a service platform providing workforce management solutions.
Humanforce is a portfolio company of Accel-KKR, a USA-headquartered tech-focused private equity firm.
Accel-KKR holds a 95 per cent interest in Humanforce.
LiveHire has previously provided its services to the likes of Asics, Katsu, Telstra Health and Vodafone.
LiveHire made a $14.1 million loss in FY23, according to Data and Insights, and is expected to be removed from the ASX after the deal.
