MedAdvisor (ASX:MDR) received a nonbinding letter of intent from a multinational software business with operations in Australia to acquire MedAdvisor's Australia and New Zealand business division in cash, according to a Wednesday Australian bourse filing.
The firm's directors believe the bid to be a materially higher value than what is implied in the current MedAdvisor share price, and it has executed the letter of intent in the best interest of shareholders.
The letter of intent includes customary conditions such as a period of exclusivity to conduct due diligence. The time frame to execute a binding sale and purchase agreement is expected to be around five to seven weeks.
Adelaide Equity Partners and HWL Ebsworth are advising on the potential transaction and are assisting with an ongoing strategic review process.
Its shares soared 30% in recent trading on Wednesday.
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