Idox recommends going private in takeover by US investment vehicle

(Alliance News) - Idox PLC on Tuesday said it has agreed to a takeover offer from a vehicle indirectly owned by funds managed by Long Path Partners.

Idox is a Woking, Surrey-based software company focused on government services and election management, and Long Path Partners is a privately-owned investment firm based in Stamford, Connecticut, which indirectly owns about 12% of Idox.

The deal values Idox at GBP339.5 million, with stockholders receiving 71.5 pence per share. This reflects a 27% premium to Monday's closing price of 56.40p.

In response, Idox shares jumped 25% to 70.42 pence on Tuesday morning in London.

Based on Idox's 2024 results, Long Path Partners said the offer implies an enterprise value of 21 times Idox's cash earnings before interest, tax, depreciation and amortisation and multiple of Ebit.

Long Path Partners described itself as "an enduring partner for Idox's next stage", adding: "Operating as a private company, Idox would be well-positioned to invest in product and technology to satisfy evolving customer demands and drive organic growth while positioning the company for long term success in a dynamic environment."

Idox Chair Chris Stone maintained confidence in the company as a standalone operation, though he noted the suitor's "plans to invest in the Idox product suite".

"Following careful consideration, as a board we have unanimously concluded that the acquisition is in the interests of our key stakeholders," Stone said.

As of Tuesday, Idox shareholders with a combined 35.29% stake have committed to vote for the takeover, which requires 75% approval. A general meeting and court meeting concerning the deal are expected to take place in the fourth quarter of 2025.

The acquisition is expected to take effect in the first quarter of 2026.

Long Path Partners plans to realise about two-thirds of its existing stake in Idox, held through Long Path Smaller Cos Master Fund Ltd and its feeder, Long Path Smaller Cos Fund LP. The remainder will be rolled over into the newly enlarged company.

By Holly Munks, Alliance News reporter

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