MariaDB plc, the prepackaged software services company previously known as Mangomill plc, has announced its departure from the New York Stock Exchange (NYSE).
On Friday, the company's board of directors authorized the delisting and deregistration of its ordinary shares and warrants. This decision follows the recent acquisition of the company's shares by Meridian BidCo LLC, an affiliate of K1 Investment Management, LLC.
The compulsory buyout process of MariaDB's shares from non-assenting shareholders was concluded, with the last of the shares scheduled to be acquired on August 26, 2024.
As a result, MariaDB has communicated with the NYSE to remove its ordinary shares, with the trading symbol MRDB, and its warrants, trading under MRDBW, from listing and registration. The final day for trading MariaDB's securities on the NYSE is anticipated to be around August 23, 2024.
The delisting is a direct outcome of the successful offer by Bidco to purchase all issued and to-be-issued ordinary shares of MariaDB. After the settlement of cash consideration for the offer on July 25, 2024, Bidco moved to acquire the remaining shares through compulsory notices sent to MariaDB shareholders who did not accept the offer.
MariaDB, headquartered in Redwood (NYSE:RWT) City, California, has a fiscal year-end on September 30 and is incorporated in Ireland. The company's transition from public to private ownership marks a significant change in its capital structure and investor relations.
InvestingPro Insights
As MariaDB transitions from a public entity to a private one, understanding its financial health and market performance is crucial for stakeholders involved in the recent acquisition. According to InvestingPro data, MariaDB operates with a market capitalization of $37.82 million and has demonstrated an 11.24% revenue growth over the last twelve months as of Q2 2024, signaling business expansion. Despite not being profitable in the last twelve months, the company boasts an impressive gross profit margin of 77.02%, reflecting strong cost management in relation to its revenue.
Investors and analysts monitoring the delisting process may find InvestingPro Tips particularly insightful. MariaDB has been flagged for operating with a significant debt burden, and its short-term obligations exceed its liquid assets, which could be a focal point for Bidco's strategic financial planning post-acquisition. On the positive side, the stock has experienced a large price uptick of 59.76% over the last six months, which may have influenced Bidco's decision to take the company private at this juncture.
For those seeking a deeper dive into MariaDB's financial metrics and strategic outlook, InvestingPro offers additional tips. There are currently 8 more tips available on InvestingPro's platform, which could provide further clarity on the company's valuation and performance trends.
It's important to note that MariaDB's decision to delist does not occur in a vacuum but is influenced by these financial realities. As the company moves forward under new ownership, these insights could be pivotal in shaping its future direction and operational strategy.
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