(Alliance News) - Castleton Technology PLC said Wednesday it has agreed to a GBP82.8 million takeover offer by MRI Software LLC, a provider of real estate investment management software.
Under the acquisition's terms, MRI Software will acquire the software and managed services provider for 95 pence per share, reflecting a 43% premium to Castleton's closing price of 66.5 pence on Tuesday.
Shares in Castleton Technology were 41% higher at 93.50 pence on Wednesday in London.
The acquisition is conditional on gaining at least 75% in shareholder approval at both the scheme meeting and court meeting, as well as being sanctioned by the High Court of Justice, particularly the Business and Property Courts of England & Wales.
"Castleton has performed well since embarking on the strategy in 2013 to build a public sector-focused software and managed service business, growing organically as well as through a series of acquisitions. The competitive landscape is changing and as such I welcome the opportunity for Castleton Shareholders to realise their investment at a premium of 42.9% to yesterday's closing price. I would also like to take this opportunity to thank all the employees of Castleton for all their hard work and support," said Non-Executive Chair David Payne.
In a separate announcement, Castleton said it expects revenue for the year ended March 31 to be no less than GBP23.3 million, down from GBP26.3 million the year before and marginally behind management expectations.
As a result, adjusted earnings before interest, taxes, depreciation and amortisation is also expected to be below management expectations.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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