Harmos Horton Lusk advises Plexure on subscription and SaaS agreement with McDonald's

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Harmos Horton Lusk advises Plexure on subscription and SaaS agreement with McDonald's
26.4.19

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.

Harmos Horton Lusk is one of New Zealand’s most prominent M&A advisors.

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