Vertex dips after announcing convertible debt deal, prelim Q1 results

Vertex

22/04/2024 22:07

** Vertex Inc's  VERX.O  shares down 2.5% at $29.30
post-market as tax software provider looks to raise capital and
releases preliminary Q1 results
    ** Co says offering privately $250 mln 5-yr convertible
bonds
    ** It plans to use net proceeds to fund capped call
transactions, remainder for working capital and general
purposes, included capex, potential acquisitions, strategic
transactions
    ** Co also says expects Q1 rev of $155.5-$157.5 mln and adj
EBITDA of $35.5-$37.5 mln; both exceed consensus calling for rev
of $154.5 mln and adj EBITDA of $30.13 mln, per LSEG data
    ** VERX closed on Mon up 5% at $30.04 for roughly $4.6 bln
market cap
    ** Shares up 11.5% YTD and up about 36% over the past 12
months
    ** In Jan, Vertex was outbid by Thomson Reuters  TRI.TO ,
which bought Swedish e-invoicing and tax solutions co Pagero for
about $789 mln

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))