Advanced Computer Software agrees to private-equity takeover bid

Advanced Computer Software (ACS) has agreed a £725m cash offer from US private-equity group Vista and gained support from almost 50% of shareholders.The 140p per share offer, which has been agreed by the AIM-listed company's board, is 17% higher than Monday's closing share price and represents a multiple of 15.8 times earnings before interest, tax, depreciation and amortisation (EBITDA).The ACS directors, who own 15.1% of the shares, plus major shareholders holding a further 20%, have all agreed to vote in favour of the bid, while a further institutional investor with a 12.9% stake has expressed positive intent.The investors would cease to support the bid in the event of a competing offer for ACS that was 10% higher.Advanced Computer Software chief executive Vin Murria said: "ACS value has grown from £32m to £725m, with the offer price representing an increase of over 724% over that period - this offer crystallises a significant return to shareholders."Chairman Michael Jackson added that the 15.8-times multiple represented "an attractive price" that recognised "the growth potential of the business whilst providing certainty in cash to ACS shareholders".Broker Liberum said: "While the end-game for ACS and its CEO Vin Murria was always seen as being a sale, the timing of this has come somewhat earlier than expected. It perhaps reflects the difficulty in finding acquisition targets of a sufficient size that offer good value to ACS, given the increasing size of the company. The acquisition price is in-line with our price target."