Augmentum Fintech rises as recommends GBP185.7 million buyout

(Alliance News) - Augmentum Fintech PLC on Wednesday saw its shares climb after saying it had agreed to a GBP185.7 million takeover offer.

London-based Augmentum invests in the European financial technology sector. Its shares traded 24% higher at 108.50 pence around noon on Wednesday in London, having gained 17% over the past year.

The all-cash deal values Augmentum at 111p per share, or GBP185.7 million in total, and is about 27% higher than Augmentum's closing price of 87.4p on Tuesday. Augmentum's net asset value after performance fees was 159.5p per share as of September 30, down from 161.5p at the end of March.

Augmentum's board plans to recommend the offer, which comes from Frontier Bidco Ltd, a new vehicle indirectly and wholly controlled by Verdane Fund Manager AB, the Stockholm-based firm which manages Verdane Freya XII Investments AB. According to Augmentum, Verdane is a specialist in European tech buyouts.

"Verdane and BidCo believe that Augmentum will be better able to achieve its growth and valuation aspirations with better access to capital under BidCo's ownership," Augmentum said on Wednesday.

Augmentum directors with a combined 1.98% stake have committed to vote in favour of the deal. Additionally, BidCo has received non-binding letters of intent from Canaccord Genuity Asset Management Ltd and Asset Value Investors Ltd, representing 7.24% of Augmentum's share capital.

The deal requires at least 75% voting approval to proceed, alongside a formal court sanction. It is expected to close in the second quarter of 2026.

Augmentum Chair William Reeve commented: "Since our IPO in 2018, Augmentum has been at the heart of the UK and European fintech sectors, backing high-growth companies such as Tide, Zopa, Iwoca, Cushon and Interactive Investor. However, we recognise that for our shareholders, this portfolio's potential has not been reflected in Augmentum's market valuation.

"Over several years, we have faced a persistent and widening discount to net asset value, compounded by low levels of liquidity...To address this, the Augmentum board has run a process to consider a range of strategic options. We are now recommending the Verdane offer, the best we received."

Reeve continued: "By accepting this offer, shareholders can realise value today that the public markets have been unable to provide, while ensuring our portfolio companies are able to gain access to the deep capital and expertise of Verdane, alongside the existing management, for their next chapter."

By Holly Munks, Alliance News reporter

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