New York-based software company, LiveTiles, is set to list on the ASX after being acquired by ASX-listed mining company, Modun (ASX:MOU).
LiveTiles has been valued at $33.75 million and will be 100 per cent acquired via an issue of 225 million Modun shares to LiveTile shareholders.
Under the deal, Modun will be renamed as LiveTiles Limited and will undertake an equity offering to raise a minimum of $9 million for growth capital for sales, marketing and development activities.
LiveTiles is a software tool that enables companies to build user interfaces for Microsoft Cloud platforms such as SharePoint, Office365 and Azure. Some of its customers include Nike, Best Buy, Thyssen Krupp, Australia Post, Commonwealth Bank and Tasmanian Government.
The company was founded in 2012 by Karl Redenbach and Peter Nguyen-Brown.
More than $6 million has been invested in product development and working capital to date and the founders have agreed to invest a further $750,000 between signing and completion, which will remain in the business.
So far, the funds have been used for assembling an experienced management team and building two proprietary software products -- LiveTiles Mosaic for education and LiveTiles for the commercial enterprise sector.
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ASX-listed Rhipe has a 12.5 per cent shareholding in LiveTiles, after it paid $2.5million to acquire its parent company, nSynergy in December, and is fully supportive of this transaction.
As part of its investment at the time, Rhipe secured exclusive distribution rights of LiveTiles across the Asia Pacific region.
Blue Ocean Equities has been appointed as lead manager of the proposed raising.