Online consulting platform Expert360 has been sold to ASX IPO hopeful Swipejobs in a transaction valued at approximately $16 million, according to shareholder documents and sources familiar with the deal. The sale, which was expected to close by the end of the week, triggers a drag notice requiring minority shareholders to surrender their shares. Founder Bridget Loudon-Harris, the company's earliest investors, and some employees are set to receive nothing from the proceeds.
Deal Structure and Investor Impact
A drag notice issued in early September confirmed that only holders of Series C and Series C1 preference shares will receive consideration under the share purchase deed. The proceeds waterfall in Expert360's constitution directs all sale value to those later-stage preference shareholders. Loudon-Harris, who holds ordinary shares through Rosa Gully Capital, is listed with a zero percent share of the purchase price.
Who Shares in the Proceeds
Expert360 raised almost $30 million since its founding in 2013 to connect companies with elite on-demand talent. The beneficiaries of the sale include Airtree Ventures, Rampersand, Hyper Capital Start-Ups, UniSuper and the Perennial Private to Public Opportunities Fund. Airtree and Rampersand hold most of the Series C shares, although they also own earlier share classes that will be wiped out.
Early Backers Face Losses
The outcome is being described by an industry insider as disastrous for Airtree Ventures, which led Expert360's $13 million Series B round in 2017. The same source suggested Airtree may recover roughly ten cents on the dollar from its overall investment. High-profile individuals including David Tozer, Sean Hogan and Frontier Ventures participated in a $4.1 million raise in 2015.
Swipejobs Expands Before IPO
Swipejobs has built an international jobs platform that uses artificial intelligence to match companies with prospective employees. Founded by billionaire Katrina Leslie, the company generates more than $1.5 billion in annual revenue and has been profitable for six years. Until this acquisition, Swipejobs did not offer services in Australia despite its global operations.
Advisers and Growth Plans
The purchase supports Swipejobs ahead of a planned ASX listing that could value the business at up to $2 billion. Barrenjoey Capital Partners, UBS and Bank of America have been formally mandated to run the initial public offering. Leslie said combining Expert360 with Swipejobs' bespoke AI technology would accelerate growth and move the business toward an AI-native model.
Founder Defends the Outcome
Loudon-Harris denied that the $16 million figure was accurate, but multiple sources with knowledge of the deal placed it around that amount. She said receiving nothing was part of the deal founders sign and that founders are paid last. She added that she was proud of the business, its team and the customer relationships built since 2013.
Leadership Transition
Loudon-Harris stepped down from the Telstra board on Monday after six years as the youngest director of an ASX 50 company. She will remain associated with Expert360 in an undetermined role, while Leslie will run the business. The founder's statement did not reference the early investors who will lose their holdings in the transaction.
The Expert360 sale closes a difficult chapter for one of Australia's early technology success stories. While Swipejobs secures a strategic acquisition ahead of its planned ASX debut, the founder and the company's original investors are left with no financial return. The outcome highlights the risks of venture-backed growth and the harsh effects of preference share waterfalls in distressed exits.
Source: CapitalBrief