Rouse is an international intellectual property firm operating in 12 jurisdictions, based in the United Kingdom, including with an emphasis on the Asia-Pacific region. It does not have a physical presence in Australia.

It is, QANTM said in its statement to the market, “highly complementary in both geographic and service lines to QANTM”.

The board of the ASX-listed entity said that following consideration that included the “potential strategic benefits of a combination of two complementary businesses”, it has agreed to the request from Rouse to conduct due diligence with a view to putting forward a binding offer capable of being considered by shareholders.

“Given the early stage nature of discussions, there is no certainty a transaction capable of being considered by shareholders will eventuate. The QANTM board recommends that shareholders take no action at this time,” the statement read.

The news follows the firm’s release of its financial results for the half year ending on 31 December, which saw the firm’s net debt down to $21.2 million from $31.8m in the prior corresponding period and a total net revenue of $585.8 million (up from $54.1 million for an 8.7 per cent increase).

Speaking at the time, QANTM chief executive and managing director Craig Dower said: “The first half of FY24 has seen us deliver our best financial results since listing.”

QANTM first listed in 2016. It operates in Australia, New Zealand, Singapore, Malaysia, and Hong Kong and counts Davies Collison Cave among its numerous brands.

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As of the time of filing this story, its share price was sitting at $1.42.

The proposal will be subject to several conditions, including completion of satisfactory due diligence and negotiation and execution of transaction documentation, QANTM detailed, adding it has appointed MA Moelis Australia as financial adviser and Gilbert + Tobin as legal adviser.

MORE TO COME.