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(Alliance News) - Shares in Ideagen PLC jumped on Monday after agreeing to a GBP1.06 billion takeover offer from London-based private equity firm Hg Pooled Management Ltd.
Shares in the Nottingham-based information management, safety, risk and compliance software provider were 46% higher at 355.50 pence each on Monday morning in London, giving a market capitalisation of GBP1.05 billion.
Under the agreement, HG Pooled will acquire Ideagen for 350 pence per share, reflecting a 44% premium to the company's closing price of 243p on Friday last week, and valuing its issued and to be issued share capital at GBP1.06 billion.
The acquisition is conditional on gaining at least 75% shareholder approval at both the general and court meeting which are set to take place on June 22, as well as being sanctioned by the High Court of Justice in England & Wales.
Ideagen expects the acquisition to be completed by July. So far, Hg Pooled has gained irrevocable acceptances from around 3.5 million shares in Ideagen, or 1.2% of the company's issued share capital.
Ideagen said it unanimously recommends the offer from Hg Pooled, but remains in talks with private equity firm Astorg, which has been granted access to due diligence.
On Thursday last week, Ideagen had confirmed that both Hg Pooled and Astorg had showed interest in a takeover bid, but had made no firm offer.
Cinven Ltd in mid-April said it was considering making a bid, but pulled out in early May.
"The all-cash offer represents a compelling and attractive opportunity for shareholders to realise and crystallise their investment in Ideagen in the near term and also provides a significant premium to the prevailing share price notwithstanding the backdrop of the wider risks posed by the political and macro-economic environment," said Chair Richard Longdon.
"The offer reflects the quality, strength and long-term performance of Ideagen's businesses and its future growth potential. We believe that Hg's track-record and expertise in supporting and growing software businesses would provide a complementary partner for Ideagen's stakeholders," Longdon added.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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