Intellectual property firm Xenith has agreed to be taken over by IPH in a $191.7 million deal after QANTM Intellectual Property failed to make a counter-offer.
The Xenith board of directors has unanimously agreed to an updated IPH proposal of $2.15 per share, to be paid in either cash or scrip.
The merger will create a market-leading Australian intellectual property company with more than 1000 employees and 440 professional staff, including at Spruson & Ferguson, AJPark, Pizzeys, Shelston, Griffith Hack and Watermark.
“Together the combined group will have a broadened Australian business and be able to leverage IPH’s significant experience and geographic reach in the Asia region, providing our clients with a comprehensive IP service offering across the region and strong career development opportunities for our people,” IPH managing director and chief executive Andrew Blattman said.
QANTM and Xenith had planned a merger of equals – which would have created an intellectual property firm rivalling the size of IPH – before IPH stepped in with its takeover bid.
It raised its $1.90-per-share offer to $2.15 per share on Monday, and QANTM declined to match it.
Together Xenith and IPH have about 40 per cent of the total patent filings in Australia, although combined they may lose some market share because the companies currently represent competitors.
The Australian Competition and Consumer Commission last month cleared the acquisition.