TSK - TASK Group Holdings

[Baa_Baa]

So we’ll never know if Plexure/Task ever become a great company

No, we won't will we. Another NZ success story, sold (bought!) to/by an Aus predator (at great cost to shareholders) and now being sold for a song a few months later.

Bloody disappointing the Houden elders capitulating for their 5x revenue multiple and a comfortable (very) retirement. Should've sold ages ago when this turned into a family business with old people as the majority owners.

In hindsight this was just their exit strategy and by gosh, they've executed it very cleverly, unlike us minnows who get a wee boost on their buy out share price and no realistic involvement with the future.

I'll be voting NO, but my shareholding won't make a dent in the concensus.

Looks like it's all over for me and TSK, unless some of the fine print conditions are triggered and this doesn't go ahead.

[Rawz]

If the Houden elders are capitulating then you don’t want to be around if it doesn’t go through..

[Greekwatchdog]

Not surprised this has happened, however very disappointed how Houden and Co have rolled over. I am guessing the new suitors got to look at the books and see how business is tracking (more than we have got to see) but it seems they just want out. Small Shareholders again get screwed. Of course I am happy with my win, but this had great potential and Task was only in its Infancy setting up the scale. I wonder how this impacts the MCDs contract.

Still good volume at high $0.70's on ASX today

[Ggcc]

Not surprised this has happened, however very disappointed how Houden and Co have rolled over. I am guessing the new suitors got to look at the books and see how business is tracking (more than we have got to see) but it seems they just want out. Small Shareholders again get screwed. Of course I am happy with my win, but this had great potential and Task was only in its Infancy setting up the scale. I wonder how this impacts the MCDs contract.

Still good volume at high $0.70's on ASX today

McDonald’s has agreed to the takeover as they needed their ok it to go further. McDonald’s has a history with PAR and is happy with the transaction. So that is maccas and the Houdens that approve the takeover, what percentage does it need to be to be fully agreed upon. I can see the share price going above 81 cents as PAR would prefer people having the shares rather than the cash.

[Greekwatchdog]

McDonald’s has agreed to the takeover as they needed their ok it to go further. McDonald’s has a history with PAR and is happy with the transaction. So that is maccas and the Houdens that approve the takeover, what percentage does it need to be to be fully agreed upon

Thanks for highlighting, obviously missed that. New glasses aren't working obviously.

[Ggcc]

Thanks for highlighting, obviously missed that. New glasses aren't working obviously.

It was never mentioned. I rang one of the directors and they mentioned this. It has been discussed by directors before that they really can’t do lots unless maccas say yes

[Greekwatchdog]

It was never mentioned. I rang one of the directors and they mentioned this. It has been discussed by directors before that they really can’t do lots unless maccas say yes

LOL then I am not blind. I would have thought that would have been mentioned? Thank you for asking and sharing.

Anyway as far as I am concerned the deal is done unless someone else wants Task

[Schrodinger]

A few points from me:

1. Obviously the offer is low but the offer of shares makes it interesting. We are at the bottom of the cycle valuations wise so keep that in mind. It is expected revenue will be north of $80m this year. New contracts have been won.
2. ‘Independent” valuation comes out above the offer price will they increase their offer? Task may hit $100m in revenue in 2025/26 valuing them above $500m imho…
3. Competing bids - there is room and will one happen?
4. Why did the major shareholder(s) endorse this bid before the independent valuation? Even at 4x multiple I think it is low 5x-6x is more reasonable.
5. There is significant USA upside for Task given the strong links to Starbucks and McDs (check McDs share price over last 10 yrs) and selling now will mean shareholders may miss the party.

[Schrodinger]

AFR today:

The Houden family which founded ASX minnow Task Group more than two decades ago stand to realise a $114 million pay day after a US rival offered to buy the company for $310 million. Task, which makes software for quick service restaurants such as McDonald’s, revealed the takeover offer from New York-listed PAR Technology Corp at 81¢ a share on Monday, more than double the stock’s last closing price.

Shareholders can opt for a cash option of 81¢ a share – a 103 per cent premium on Friday’s 40¢ close – or a mix of cash and PAR shares. Based on the last traded price of PAR shares of $US43.41, the scrip-blended consideration implies a value of 98¢ per Task share.
Founded by husband and wife Kym and Jenny Houden in a Sydney garage in 2000, the family still own around 36 per cent of Task and plan to convert 50 per cent of their stake into PAR scrip. “We feel very strongly about the opportunity ahead of us and our ability to add value to the PAR organisation in the US,” said Dan Houden, chief executive of Task.

The deal comes amid a flurry of M&A in the software sector, which has seen the likes of Whispir, Altium and Ansarada become takeover targets. Shares in Task, which makes point of sale and loyalty software for customers including Guzman y Gomez, Starbucks and Retail Food Group, jumped to 93 per cent to 78¢ on Monday.

Task arrived on the ASX after it was acquired by New Zealand marketing software company Plexure Group, the digital name behind the McDonald’s app, for $120 million in October 2021. The deal gave Task’s shareholders 43 per cent ownership in Plexure.
As part of the merger, early Task employees were given around $20 million worth of stock, or around 4 per cent of the combined company.
Dan Houden, who has taken over running the family business alongside his brother Dean, said the merger invited a wave of interest from potential acquirers.

“We embarked on the turnaround of Plexure and started to get a little bit of attention from a bunch of multinationals… I said, ‘look, I’m servicing a plane while it’s in the air, let’s get through this’,” the CEO said.

Since then, the company achieved a net profit of $NZ400,000 ($370,000) last financial year, narrowing from a loss of $NZ24.3 million a year earlier, and renegotiated a five-year deal with McDonald’s across its international markets.

After that was completed, we looked at what the next phase of growth looked like… and that resulted in this deal that we announced today.” PAR is a $US1.22 billion ($1.84 billion) company that makes hardware and software used in more than 70,000 restaurants in 110 countries.

MrHouden said joining forces with a much larger global player would help Task grow.“It offers Task a better base on which to achieve its international ambitions, provides a strong group with significant opportunities for our employees and provides certainty for our shareholders who have supported the growth of Task to become a meaningful player in the global retail software market,” he said.

[Greekwatchdog]

Thank you for posting