Solution 6 Holdings and Sausage Software Merges with Telstra in $4.5 Billion Deal

Solution 6 Holdings and Sausage Software have reached a major milestone in their $4.5 billion consolidation deal, creating Australia's leading online software provider. The deal marks a significant shift in the industry, with major shareholder Telstra playing a pivotal role. The merged company, in which Telstra will hold a 40% stake, is set to dominate the Australian market.

Key Takeaways:

• The consolidation deal values Solution 6 Holdings and Sausage Software at approximately $4.5 billion, based on yesterday's closing prices.
• Solution 6 has offered six of its shares for every 10 Sausage shares and six of its options for every 10 Sausage options.
• Telstra will sell electronic commerce assets to Solution 6 for a combined value of $237 million.
• The deal includes a $50 million capital injection from Telstra into Solution 6, increasing its holding to 40% from 24%.
• The managing director of Telstra's convergent business, Ted Pretty, will become chairman of Solution 6.
• Solution 6's chief executive, Chris Tyler, believes the takeover is a "very logical move for us" and will enable the company to advance its global e-business platform.
• Sausage's chairman, Gil Hoskins, believes the merger proposal has strong strategic benefits and will make a recommendation to the board in due course.

Statistics:

• The merged company will have a value of approximately $4.5 billion, based on yesterday's closing prices.
• Solution 6 Holdings has surged 36% to $13, while Sausage Software has increased by $1.58 to $7.38.
• Telstra has slipped 7c to $7.69.
• The deal includes a combined value of $237 million for the electronic commerce assets sold by Telstra.
• The capital injection from Telstra into Solution 6 is worth $50 million.
• Telstra's holding in Solution 6 will increase to 40% from 24%.

Sources:

• "Byline: BIANCA WORDLEY" (no specified publication date)
• Solution 6 Holdings and Sausage Software (no specified publication date)