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Case Study Automation IT: Sale of Shares to Publicly Listed Company

Redchip acted for the shareholders of Automation IT (AIT) in the disposal of shares to ASX-listed company, Saunders International Limited.

AIT is a customer-focused control systems engineering company that works on real-time software development for a diverse range of hardware platforms. Automation IT was acquired by publicly listed engineering and construction company, Saunders International Limited, in June 2023.

Saunders International Limited acquired Automation IT by taking ownership of 100% of shares. Redchip worked in conjunction with the Buyer and its representatives in relation to reporting requirements and disclosure obligations as a publicly listed company.

Our team:

  • Reviewed and advised on the share sale agreement for the transaction;
  • Facilitated negotiations between the parties as to the execution of the agreement;
  • Advised on securities relating to assets owned by the Company and on assets that were in transit from suppliers, and the necessary releases required to hand-over assets at Completion;
  • Considered and resolved a range of financial issues that impacted the terms of the share sale agreement including working capital mechanisms and components and lockbox arrangements;
  • Strategised with our client regarding the steps required to obtain change of control consents from a large number of customers and suppliers; and
  • Prepared and advised in relation to various property aspects related to the transaction.

Our experienced M&A team drove the smooth execution of this transaction, that completed on time with an excellent commercial outcome for AIT. A lawyer involved in the matter said:

“This transaction presented a number of variables that required us to consider a range of issues to reach a satisfactory commercial outcome for both the Buyer and the Seller. Despite these variables, we were able to complete the transaction and provide a fantastic outcome to our clients.”

Represented by:

Peter McLaughlin