Australia's ELMO Software (ELO) said on Wednesday it has agreed...

Australia's ELMO Software (ELO) said on Wednesday it has agreed to a near-A$500 million ($319 million) takeover bid from Los Angeles-based K1 Investment Management.

The U.S. group offered A$4.85 per share in cash for the cloud-based software solutions business that operates in Australia, New Zealand and the United Kingdom.

The offer is a 100.4% premium to the closing share price on Oct. 12, the day before ELMO announced it had received approaches expressing interest in a takeover. ELMO's shares on Wednesday shot 41% higher, erasing a 27% loss incurred so far in 2022 ahead of the takeover.

The bid was recommended to shareholders by ELMO's independent board committee, the company said. ELMO's chief executive Danny Lessem, who owns 11% of the company's stock, will vote in favour of the deal.

Two of ELMO's biggest investors, JLAB Investments and the Garber Family Trust, have also backed the bid, ELMO's statement on Wednesday said.

Since K1 is an overseas firm the takeover will require approval from Australia's Foreign Investment Review Board. ($1 = 1.5672 Australian dollars)