Gamma backs outlook as reveals bid talks with US-based Providence

(Alliance News) - Gamma Communications PLC on Wednesday confirmed Providence Equity Partners LLC is among those groups involved in preliminary takeover discussions.

The Newbury, Berkshire-based provider of cloud communications and voice services said talks with Rhode Island, US-based private equity firm Providence are at a "preliminary" stage.

In April, Gamma said it was in early-stage talks with a number of "potential offerors".

On Wednesday, shares in Gamma ticked 3.4% higher to 924.50 pence each for a market value of GBP838.8 million. They have fallen 29% in the last 12 months.

Under UK takeover rules, Providence has until June 10 to make a firm takeover proposal for Gamma.

In addition, Gamma said trading in the opening months of financial 2026 is in line with expectations, supported by continued growth in cloud communications and healthy cash generation.

Net debt narrowed to GBP1.6 million at April 30 from GBP9.3 million at December 31, despite share buyback and acquisition-related payments.

Gamma reiterated full-year 2026 guidance and expects adjusted Ebitda within the analyst consensus range of GBP138.1 million to GBP142.8 million, with fully diluted adjusted earnings per share expected between 90.9p and 94.4p.

In 2025, Gamma reported adjusted Ebitda of GBP141.7 million and fully diluted adjusted EPS of 94.5p.

By Jeremy Cutler, Alliance News reporter

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