(Alliance News) - IQGeo Group PLC on Tuesday accepted an GBP333 million takeover offer from US investment firm Kohlberg Kravis Roberts & Co LP.
Shares in IQGeo soared 15% to 464.20 pence in London on Tuesday afternoon.
IQGeo is a Cambridge, England-based provider of geospatial productivity and collaboration software for the telecoms and utility industries.
IQGeo said the cash bid was worth 480 pence per share and valued the company at around GBP333 million on a fully diluted basis. This implied an enterprise value of around GBP316 million, the company added.
IQGeo said it was approaching a "potential inflection point," with additional investment likely to be required over the coming years.
"This could increase execution risk, and increased investment will be required to underpin medium and long-term growth expectations," it said.
IQGeo said it had received "numerous" approaches over the last two years, but has concluded the KKR approach, which followed a period of extensive price negotiation, was the most attractive for shareholders.
The KKR offer has received the backing of shareholders representing just over 58% of IQGeo shares.
For its part, KKR said it had been assessing IQGeo and its business for a number of months and recognises IQGeo's differentiated and modern product, proven management team and strong value proposition for its customers.
But it thinks IQGeo will require significant investment that is likely to reduce profitability in the short to medium term.
This makes a move to private ownership in the long-term interest of IQGeo, its customers and its other stakeholders, in KKR's view.
By Jeremy Cutler, Alliance News reporter
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Iqgeo (IQG)