Harmos Horton Lusk advised NZX-listed technology company Plexure Group Limited on the terms of a cornerstone subscription of shares by fast food giant McDonald’s Corporation.  On 2 April 2019, McDonald’s subscribed for 9.9% of the shares in Plexure for $5.4m, representing a 15% premium on the then-current share price.

We also assisted Plexure to renegotiate aspects of its Software as a Service (SaaS) agreement with McDonald’s, which applies to a platform currently utilised by more than 100 million customers in more than 48 countries.

The arrangements with McDonald’s include equity top-up rights which give McDonald’s the opportunity to maintain its 9.9% shareholding in certain circumstances and subject to certain conditions, as well as notice and limited-time standstill provisions applicable if a proposal is received from any one on a defined list of competitors to acquire at least 50% of Plexure’s shares or substantially all of Plexure’s assets.

Plexure’s Chief Executive Officer Craig Herbison said “This is a tremendous vote of confidence from our largest customer.  This investment will further our efforts to reach more people with our technology, provide world-class service to our clients and execute our growth plans for our company.”

Harmos Horton Lusk director Andrew Harmos, together with Kelsey Farmer (associate), advised Plexure on the transaction.

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