TRI Thomson Reuters Corp

By Ben Otto

Thomson Reuters is launching a $626 million cash bid for Pagero Group, beating a rival offer made by Vertex for the Swedish e-invoicing provider last month.

Thomson Reuters said Thursday that it will begin a public tender offer to acquire all shares of Pagero on Friday. It intends to pay 40 Swedish krona a share, valuing the Gothenburg-based company at SEK6.4 billion ($626.0 million).

Pagero separately said that an independent bid committee of its board had unanimously recommended acceptance of the offer. The committee withdrew its recommendation for the rival bid from Vertex, which had valued the company at about SEK5.8 billion.

Pagero said that its largest shareholders--Summa Equity and Chief Executive Bengt Nilsson, who together hold more than 40% of the outstanding shares and votes in Pagero--plan to accept the Thomson Reuters offer in the absence of a better rival offer.

Thomson Reuters said the acquisition, subject to acceptance by more than 90% of Pagero shareholders, will build on the companies' strategic partnership announced in February last year.

"As many countries move towards real-time digital tax regimes, the e-invoicing compliance capabilities of Pagero complement and expand Thomson Reuters' indirect tax offerings, providing enhanced compliance and workflow automation benefits to customers," Thomson Reuters said in a statement.

Thomson Reuters said it will fund the acquisition via funds currently available to the company. Morgan Stanley & Co. and Linklaters are acting as financial adviser and legal adviser, respectively.

U.S. software company Vertex last month launched a $555 million cash bid for Pagero, seeking to pay SEK36 a share. It said at the time that it wouldn't increase the offer price.

Pagero shares last closed at SEK36. Prior to Vertex's offer, they traded at SEK21 a share.

Write to Ben Otto at ben.otto@wsj.com

(END) Dow Jones Newswires

January 11, 2024 01:59 ET (06:59 GMT)

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