(Alliance News) - DWF Group PLC on Friday said it has agreed to an acquisition by Inflexion Private Equity Partners LLP of all of its shares, in a deal which values the company at over GBP340 million.
DWF is a Manchester, England-based legal business with operations in North America. Inflexion is a London-based mid-market private equity firm investing across various sectors.
Shares in DWF jumped 14% to trade at 96.50 pence in London on Friday midday.
Under the acquisition terms each DWF shareholder will be entitled to the transaction value of 100p per share, comprising 97p cash consideration and a 3p special dividend conditional upon the acquisition becoming effective. The deal values DWF's entire ordinary share capital at approximately GBP342 million.
Instead of the above offer, shareholders can elect to receive a partial securities alternative. Recipients would at their discretion receive either 65p per share as loan notes or preference shares with the remaining 35p of the transaction value in cash. Alternatively, shareholders could opt to receive 100p in cash, of which 40p would be invested by subscribing for loan notes. Both cash payouts would include the special dividend.
Earlier this month Liberum, in response to DWF being in discussions with Inflexion about the potential 100p cash offer, upgraded DWF to 'hold' from 'sell' with a 100p per share target price.
"The DWF board of directors is pleased to announce its unanimous recommendation of this acquisition, which is highly attractive not only for our internal and external shareholders, but also for our clients, employees and other stakeholders," said DWF Chair Jonathan Bloomer.
"The [board] recognises the opportunities that could be delivered under private ownership with Inflexion, which includes access to significant capital to invest in staff and technology, accelerated lateral hiring and transformative acquisitions across jurisdictions."
Flor Kassai, head of Inflexion's buyout fund, commented: "We are excited to partner with DWF as we look to support the business in delivering on its vision to become the leading provider of integrated legal and business professional services, through continued strong organic growth and targeted acquisitions in the UK and international markets."
By Emma Curzon, Alliance News reporter
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