(Alliance News) - Sopheon PLC on Tuesday said it received a possible takeover offer from Iops Buyer Inc, a subsidiary of Wellspring Worldwide Inc.
Sopheon, a Surrey, England-based enterprise software provider, said the takeover offer was for GBP10.00 per share, valuing the company at around GBP114.9 million. This is more than double the price of the closing share price of GBP4.90 on Monday. It said it would back an official bid if one was made on those terms.
Sopheon shares jumped 90% to 929.00 pence each on Tuesday afternoon in London, giving it a market capitalisation of GBP98.9 million.
Wellspring Worldwide is backed and controlled by Resurgens Technology Partners, a technology-focused private equity firm based in Atlanta, Georgia, US. Wellspring is a provider of software solutions and data systems for managing technology transfer and intellectual property and innovation activities.
Sopheon said discussions relating to the possible offer are well advanced, with its board intending to unanimously recommending the takeover, should an official bid be made. It would be subject to regulatory clearance, which Sopheon expects to receive in or before mid-December.
"The Sopheon board remains highly confident in Sopheon's standalone prospects as an independent company over the medium to long term, and is pleased with the progress made over the last few years in advancing its strategic priorities. The Sopheon board has however, in summary, concluded that the possible offer presents an attractive valuation for Sopheon, and a compelling liquidity opportunity not currently afforded by the public markets," Sopheon said.
It added that it has the support of key shareholders that represent 37% of Sopheon's issued share capital, with Barry Mence, a 17.8% shareholder, and Rivomore Ltd, a 19.5% shareholder, supporting the possible takeover. Barry Mence is a non-executive director of Sopheon, a founding member and has served as executive chair of the company.
By Tom Budszus, Alliance News reporter
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