Elmo Software’s strut around the auction block has failed to reel in suitors despite an extensive makeover performed by its PE owners over the past two years.
Street Talk understands California-based K1 Investment Management has abandoned plans to sell the once ASX-listed human resources software player, which it took private for $486 million in 2022 amid an M&A frenzy for beaten-down technology names.
K1 last year hired UBS to seek buyers, as revealed by this column.
Sources said Bain Capital, which was among parties weighing a first-round bid, had baulked at K1’s sky-high price expectations. We are told the same goes for Accel-KKR, which has been an enthusiastic bidder for Australian HR businesses since it acquired a majority stake in Humanforce about three years ago, and for another US suitor Thoma Bravo. (Accel-KKR was also the underbidder in Elmo’s take-private, while HumanForce is a direct competitor to one of Elmo’s products).
Read the full story tomorrow and more on the Street Talk page.
New York behemoth Cerberus Capital Management is canvassing Star Entertainment’s lender syndicate to identify banks or credit funds willing to sell their debt, as the battered casino giant speeds towards insolvency and breakup of its assets.
Best and worst
Technology, electricity and data centre companies tumbled on the ASX on Tuesday, spooked by a sharp sell-off of Nvidia after the release of Chinese Artificial Intelligence model DeepSeek.
