Gresham Regulatory News (GHT)

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

FOR IMMEDIATE RELEASE

 9 April 2024

RECOMMENDED CASH ACQUISITIONOFGRESHAM TECHNOLOGIES PLCBYALLIANCE BIDCO LTD

(a company owned indirectly by funds managed or advised by STG Partners, LLC ("STG"))

to be implemented by means of a scheme of arrangementunder Part 26 of the Companies Act 2006

Commenting on the Acquisition, Richard Last, Chairman of Gresham, said:

"We believe the Cash Offer provides a good opportunity for Gresham Shareholders to realise fair and certain value and an exciting way for Gresham to compete more effectively in its global markets and to continue the Clareti journey started over a decade ago."

Commenting on the Acquisition, Marc Bala, Managing Director at STG and a director of Bidco, said:

"We couldn't be more excited about bringing together two leading financial technology providers and leveraging the respective strengths of each company to drive greater value for our combined customers. By combining Gresham with Alveo we will create a capital markets data management specialist that offers clients greater scale and a range of solutions to facilitate their business processes. We look forward to welcoming Gresham to the STG family."

This summary should be read in conjunction with, and is subject to, the full text of this Announcement and the Appendices. The Acquisition will be subject to the Conditions and other terms set out in this Announcement and to the full terms and conditions which will be set out in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document). The Conditions to, and certain further terms of, the Acquisition are set out in Appendix 1 to this Announcement. The sources and bases of calculation of certain information contained in this Announcement are set out in Appendix 2 to this Announcement. Details of irrevocable undertakings and letters of intent received by Bidco are set out in Appendix 3 to this Announcement. Certain terms used in this Announcement are defined in Appendix 4 to this Announcement.

Enquiries:

Paul Hastings (Europe) LLP is acting as legal adviser to STG and Bidco.

Taylor Wessing LLP is acting as legal adviser to Gresham.

Important notices relating to financial advisers

William Blair International, Limited ("William Blair"), which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for STG and Bidco and no one else in connection with the subject matter of this Announcement and will not be responsible to anyone other than STG and Bidco for providing the protections afforded to the clients of William Blair, or for providing advice in connection with the subject matter of this Announcement. Neither William Blair nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of William Blair in connection with the subject matter of this Announcement, any statement contained herein or otherwise.

Houlihan Lokey Advisory Limited ("Houlihan Lokey"), which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively as financial adviser and Rule 3 adviser to Gresham and no one else in connection with the matters set out in this Announcement and will not be responsible to anyone other than Gresham for providing the protections afforded to clients of Houlihan Lokey or for providing advice in relation to matters referred to in this Announcement. Neither Houlihan Lokey nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Houlihan Lokey in connection with this Announcement, any statement contained herein or otherwise.

Singer Capital Markets Advisory LLP ("Singer Capital Markets"), which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for Gresham and no-one else in connection with the subject matter of this Announcement and will not be responsible to anyone other than Gresham for providing the protections afforded to clients of Singer Capital Markets or for providing advice in relation to the subject matter of this Announcement or any other matter referred to in this Announcement.

Each of William Blair, Houlihan Lokey and Singer Capital Markets have given and not withdrawn their consent to the publication of this Announcement with the inclusion herein of the references to their respective names and (where applicable) advice in the form and context in which they appear.

Further information

This Announcement is for information purposes only and is not intended to, and does not, constitute or form part of any offer or inducement to sell or an invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities or the solicitation of an offer to buy any securities, any vote or approval in any jurisdiction pursuant to the Acquisition or otherwise. The Acquisition will be implemented solely pursuant to the terms of the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document), which will contain the full terms and conditions of the Acquisition, including details of what action is required from Gresham Shareholders in respect of the Acquisition. Any decision in respect of, or other response to, the Acquisition should be made only on the basis of the information in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document).

Gresham and Bidco shall prepare the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document) to be distributed to Gresham Shareholders. Gresham and Bidco urge Gresham Shareholders to read the Scheme Document in its entirety (or, if the Acquisition is implemented by way of an Offer, the Offer Document) when it becomes available because it will contain important information relating to the Acquisition including details of how to vote in respect of the Scheme.

This Announcement does not constitute a prospectus or prospectus equivalent document.

Bidco reserves the right to elect to implement the Acquisition by way of an Offer as an alternative to the Scheme (subject to the Panel's consent). In such event, the Acquisition will be implemented on substantially the same terms, so far as applicable, as those which will apply to the Scheme, subject to appropriate amendments to reflect, among other things, the change in method of effecting the Acquisition (including, without limitation: (i) the inclusion of an acceptance condition set at 90 per cent. of the Gresham Shares to which such Offer relates (or such other percentage as Bidco may, subject to the rules of the Takeover Code and with the consent of the Panel, decide); and (ii) those required by, or deemed appropriate by, Bidco under applicable law). Further, if sufficient acceptances of such Offer are received and/or sufficient Gresham Shares are otherwise acquired, it is the intention of Bidco to apply the provisions of Chapter 3 of Part 28 of the Companies Act 2006 to acquire compulsorily any outstanding Gresham Shares to which such Offer relates.

If you are in any doubt about the contents of this Announcement or the action you should take, you are recommended to seek your own independent financial advice immediately from your stockbroker, bank manager, solicitor, accountant or independent financial adviser duly authorised under the Financial Services and Markets Act 2000 (as amended) if you are resident in the United Kingdom or, if not, from another appropriately authorised independent financial adviser.

Overseas Shareholders

This Announcement has been prepared in accordance with and for the purpose of complying with the laws of England and Wales, the Takeover Code, the Market Abuse Regulation and the Disclosure Guidance and Transparency Rules and information disclosed may not be the same as that which would have been disclosed if this Announcement had been prepared in accordance with the laws of jurisdictions outside England.

The release, publication or distribution of this Announcement in or into certain jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should inform themselves of, and observe, any applicable requirements of their jurisdictions.

The availability of the Acquisition to Gresham Shareholders who are not resident in and citizens of the United Kingdom may be affected by the laws and/or regulations of the relevant jurisdictions in which they are located or of which they are citizens. Persons who are not resident in and citizens of the United Kingdom should inform themselves of, and observe, any applicable legal or regulatory requirements of their jurisdictions. In particular, the ability of persons who are not resident in and citizens of the United Kingdom to vote their Scheme Shares with respect to the Scheme at the Court Meeting, or to execute and deliver forms of proxy appointing another person to vote at the Court Meeting on their behalf, may be affected by the laws of the relevant jurisdictions in which they are located or of which they are a citizen. Gresham Shareholders who are in any doubt regarding such matters should consult an appropriate independent financial adviser in their relevant jurisdiction without delay. Any failure to comply with the applicable restrictions may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies and persons involved in the Acquisition disclaim any responsibility or liability for the violation of such restrictions by any person.

Unless otherwise determined by Bidco or required by the Takeover Code, and permitted by applicable law and regulation, participation in the Acquisition will not be made available, directly or indirectly, in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction and no person may vote in favour of the Acquisition by any such use, means, instrumentality or from within a Restricted Jurisdiction or any other jurisdiction if to do so would constitute a violation of the laws of that jurisdiction. Accordingly, copies of this Announcement and any formal documentation relating to the Acquisition are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in, into or from any Restricted Jurisdiction and persons receiving this Announcement and all such documents relating to the Acquisition (including, without limitation, agents, custodians, nominees and trustees) must not, directly or indirectly, mail or otherwise forward, distribute or send them in, into or from any Restricted Jurisdiction. Doing so may render invalid any related purported vote in respect of the Acquisition. If the Acquisition is implemented by way of an Offer (unless otherwise permitted by applicable law and regulation), the Offer may not be made directly or indirectly, in or into, or by the use of mails or any means or instrumentality (including, but not limited to, facsimile, e-mail or other electronic transmission, telex or telephone) of interstate or foreign commerce of, or of any facility of a national, state or other securities exchange of, any Restricted Jurisdiction and the Offer may not be capable of acceptance by any such use, means, instrumentality or facilities.

Further details in relation to Overseas Shareholders will be contained in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document).

Notice to US investors in Gresham

Gresham Shareholders in the United States should note that the Acquisition relates to the shares of an English company and is proposed to be made by means of a scheme of arrangement provided for under, and governed by, the laws of England and Wales.

Neither the proxy solicitation nor the tender offer rules under the U.S Securities Exchange Act of 1934, as amended (the "US Exchange Act") will apply to the Scheme. Moreover, the Scheme will be subject to the disclosure and procedural requirements and practices applicable in the United Kingdom to schemes of arrangement, which differ from the disclosure and procedural requirements of US tender offer and proxy solicitation rules. If, in the future and subject to the consent of the Panel, Bidco exercises the right to implement the Acquisition by way of an Offer and determines to extend the offer into the United States, the Acquisition will be made in compliance with applicable United States laws and regulations, including any applicable exemptions under the US Exchange Act. Such an Offer would be made in the United States by Bidco and no one else. In accordance with normal United Kingdom practice and consistent with Rule 14e-5 under the US Exchange Act, Bidco, certain affiliated companies and the nominees or brokers (acting as agents) may make certain purchases of, or arrangements to purchase, shares in Gresham outside such Offer during the period in which such Offer would remain open for acceptance. If such purchases or arrangements to purchase were to be made they would be made outside the United States either in the open market at prevailing prices or in private transactions at negotiated prices and would comply with applicable law, including, to the extent applicable, the US Exchange Act. Any information about such purchases will be disclosed as required in the United Kingdom, will be reported to a Regulatory Information Service and will be available on the London Stock Exchange website at www.londonstockexchange.com.

The financial information included in this Announcement and the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document) has been or will have been prepared in accordance with generally accepted accounting principles of the United Kingdom and thus may not be comparable to the financial information of US companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States ("US GAAP"). US GAAP differs in certain significant respects from accounting standards applicable in the United Kingdom. None of the financial information in this document has been audited in accordance with auditing standards generally accepted in the United States or the auditing standards of the Public Company Accounting Oversight Board (United States).

Neither the Acquisition nor this Announcement have been approved or disapproved by the US Securities and Exchange Commission, any state securities commission in the United States or any other US regulatory authority, nor have any such authorities passed upon or determined the adequacy

or accuracy of the information contained in this Announcement or the merits of the Acquisition. Any representation to the contrary is a criminal offence in the United States.

The receipt of consideration by a US holder for the transfer of its Gresham Shares pursuant to the Acquisition may be a taxable transaction for US federal income tax purposes and under applicable US state and local, as well as non-US and other, tax laws. Each Gresham Shareholder is urged to consult their independent professional adviser immediately regarding the tax consequences of the Acquisition applicable to them, including under applicable US federal, state and local, as well as non-US and other, tax laws.

It may be difficult for US holders of Gresham Shares to enforce their rights and any claim arising out of the US federal laws or to enforce against them a judgment of a US court predicated upon the securities laws of the United Kingdom, since Bidco and Gresham are incorporated in a non-US jurisdiction, and some or all of their officers and directors may be residents of countries other than the United States. US holders of Gresham Shares may not be able to sue a non-US company or its officers or directors in a non-US court for violations of the US securities laws. Further, it may be difficult to compel a non-US company and its affiliates to subject themselves to a US court's judgment.

Cautionary note regarding forward-looking statements

This Announcement (including information incorporated by reference in this Announcement), oral statements made regarding the Acquisition, and other information published by Bidco and Gresham contain certain statements which are, or may be deemed to be, "forward-looking statements". Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Bidco and Gresham about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.

The forward-looking statements contained in this Announcement include statements relating to the expected effects of the Acquisition on Bidco and Gresham (including their future prospects, developments and strategies), the expected timing and scope of the Acquisition and other statements other than historical facts. Forward-looking statements often, but not always, use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "hope", "aims", "continue", "will", "may", "should", "would", "could", or other words of similar meaning or derivatives thereof. These statements are based on assumptions and assessments made by Gresham and/or Bidco in light of their experience and their perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this Announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements and as such are qualified in their entirety. These factors include, but are not limited to: the ability to complete the Acquisition; the ability to obtain requisite regulatory and shareholder approvals and the satisfaction of other Conditions on the proposed terms and schedule; changes in the global political, economic, business and competitive environments and in market and regulatory forces; changes in future exchange and interest rates; changes in tax rates; future business combinations or disposals; changes in general economic and business conditions; changes in the behaviour of other market participants; changes in the anticipated benefits from the proposed transaction not being realised as a result of changes in general economic and market conditions in the countries in which Bidco and Gresham operate, weak, volatile or illiquid capital and/or credit markets, changes in the degree of competition in the geographic and business areas in which Bidco and Gresham operate and changes in laws or in supervisory expectations or requirements.

Forward-looking statements may include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies and the expansion and growth of Gresham's operations and potential synergies resulting from the Acquisition; and (iii) the effects of global economic conditions and governmental regulation on Gresham's business.

Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors may cause the actual results, performance or achievements of Gresham to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors include changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or disposals.

No member of Gresham, nor any of its associates, directors, officers, employees or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this Announcement will actually occur.

Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place any reliance on these forward-looking statements which speak only as at the date of this Announcement. Neither Gresham nor Bidco assumes any obligation to update or correct the information contained in this Announcement (whether as a result of new information, future events or otherwise), except as required by applicable law.

Dealing and opening position disclosure requirements

Under Rule 8.3(a) of the Takeover Code, any person who is interested in one per cent. or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified.

An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 p.m. (London time) on the 10th Business Day following the commencement of the offer period and, if appropriate, by no later than 3.30 p.m. (London time) on the 10th Business Day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Takeover Code, any person who is, or becomes, interested in one per cent. or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 p.m. (London time) on the Business Day following the date of the relevant dealing. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4). Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

Publication on a website

In accordance with Rule 26.1 of the Takeover Code, a copy of this Announcement and the documents required to be published under Rule 26 of the Takeover Code will be made available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on Gresham's website at www.greshamtech.com/invest-in-us by no later than 12 noon (London time) on the first Business Day following the date of this Announcement. For the avoidance of doubt, neither the contents of this website nor any website accessible from hyperlinks is incorporated into or forms part of this Announcement.

No profit forecasts, estimates or quantified benefits statements

Save for the profit estimates set out in paragraph 8.1 of this Announcement, no statement in this Announcement is intended to constitute a profit forecast, profit estimate or quantified benefits statement for any period and no statement in this Announcement should be interpreted to mean that the earnings or future earnings per share of or dividends or future dividends per share of Gresham for the current or future financial years will necessarily match or exceed the historical published earnings or earnings per share or dividends per share of Gresham.

Requesting hard copy documents

In accordance with Rule 30.3 of the Takeover Code, Gresham Shareholders, persons with information rights and participants in the Gresham Share Plans may request a hard copy of this Announcement by contacting Gresham's registrars, Equiniti on +44 (0)371 384 2050. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 08:30 - 17:30, Monday to Friday excluding public holidays in England and Wales; or (ii) by submitting a request in writing to Equiniti at Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA. Please note that Equiniti cannot provide any financial, legal or tax advice and calls may be recorded and monitored for security and training purposes. For persons who receive a copy of this Announcement in electronic form or via a website notification, a hard copy of this Announcement will not be sent unless so requested. Such persons may also request that all future documents, announcements and information to be sent to them in relation to the Acquisition should be in hard copy form.

Electronic communications

Please be aware that addresses, electronic addresses and certain other information provided by Gresham Shareholders, persons with information rights and other relevant persons for the receipt of communications from Gresham may be provided to Bidco during the Offer Period as required under Section 4 of Appendix 4 of the Takeover Code to comply with Rule 2.11(c) of the Takeover Code.

Rounding

Certain figures included in this Announcement have been subjected to rounding adjustments. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an arithmetic aggregation of figures that precede them.

General

If the Acquisition is effected by way of an Offer, and such an Offer becomes or is declared unconditional in all respects and sufficient acceptances are received, Bidco intends to exercise its rights to apply the provisions of Chapter 3 of Part 28 of the Companies Act 2006 so as to acquire compulsorily the remaining Gresham Shares in respect of which the Offer has not been accepted.

Investors should be aware that Bidco may purchase Gresham Shares otherwise than under any Offer or the Scheme, including pursuant to privately negotiated purchases.

Rule 2.9 of the Takeover Code

For the purposes of Rule 2.9 of the Takeover Code, Gresham confirms that, as at 8 April 2024 (being the Last Practicable Date), it had 83,874,458 ordinary shares of 5 pence each ("Ordinary Shares") in issue and admitted to trading on the Main Market of the London Stock Exchange. Gresham does not hold any Ordinary Shares in treasury. The International Securities Identification Number (ISIN) for the Ordinary Shares is GB0008808825.

Disclaimer

The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. The information contained herein is not for publication or distribution to persons in the United States. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration. The Acquisition will be subject to English law, the jurisdiction of the Court, and the applicable requirements of the Takeover Code, the Panel, the London Stock Exchange, the Financial Conduct Authority and the Registrar of Companies.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

FOR IMMEDIATE RELEASE

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

9 APRIL 2024

RECOMMENDED CASH ACQUISITIONOFGRESHAM TECHNOLOGIES PLCBYALLIANCE BIDC LTD

(a company owned indirectly by funds managed or advised by STG Partners, LLC ("STG"))

to be implemented by means of a scheme of arrangementunder Part 26 of the Companies Act 2006

1. Introduction

The boards of Alliance Bidco Ltd ("Bidco") and Gresham Technologies plc ("Gresham") are pleased to announce that they have reached agreement on the terms and conditions of a recommended offer by Bidco for the entire issued and to be issued ordinary share capital of Gresham (the "Acquisition"). It is intended that the Acquisition will be implemented by way of a court sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (although Bidco reserves the right to effect the Acquisition by way of an Offer, subject to the consent of the Panel).

2. The Acquisition

Under the terms of the Acquisition, which will be subject to the Conditions and further terms set out in Appendix 1 to this Announcement and the full terms and conditions to be set out in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document), each Gresham Shareholder will be entitled to receive:

for each Gresham Share: 163 pence in cash (the "Cash Offer")

In addition, prior to the Effective Date the Gresham Directors intend to declare and settle an interim dividend in respect of the year ended 31 December 2023 of 0.75 pence per Gresham Share (the "Permitted Dividend").

The Cash Offer and the Permitted Dividend together aggregate to 163.75 pence per Gresham Share which represents a premium of approximately:

The Acquisition values the entire issued and to be issued ordinary share capital of Gresham at approximately £146.7 million on a fully diluted basis and implies an enterprise value of approximately £141.9 million which equates to a multiple of 30.8 times the Gresham Directors' estimate of Gresham's FY2023 adjusted cash EBITDA.

The Scheme Shares will be acquired pursuant to the Acquisition fully paid and free from all liens, charges, equities, encumbrances, rights of pre-emption and any other interest of any nature whatsoever and together with all rights attaching thereto, including without limitation voting rights and the rights to receive and retain in full all dividends and distributions (if any) announced, declared, made or paid with a record date on or after the Scheme Record Time.

STG, Bidco and Gresham have agreed to the declaration and payment of the Permitted Dividend without any reduction to the Cash Offer. If, on or after the date of this Announcement and before the Effective Date, any dividend and/or other distribution and/or other return of capital is declared, made or paid or becomes payable in respect of Gresham Shares (other than the Permitted Dividend), Bidco reserves the right to reduce the consideration payable under the terms of the Acquisition by an amount up to the aggregate amount of such dividend and/or distribution and/or return of capital, in which case any reference in this Announcement to the consideration payable under the terms of the Acquisition will be deemed to be a reference to the consideration as so reduced. Any exercise by Bidco of its rights referred to in this paragraph shall be the subject of an announcement and, for the avoidance of doubt, shall not be regarded as constituting any revision or variation of the terms of the Acquisition. In such circumstances, Gresham Shareholders will be entitled to retain any such dividend, distribution or other return of capital declared, made or paid or which becomes payable.

3. Background to and reasons for the Acquisition

Bidco believes the Acquisition represents a compelling opportunity to acquire an attractive and well-established business providing post-trade processing solutions to capital markets participants. Gresham is well-positioned as a data control, reconciliation and post-trade workflow vendor to the financial services sector across the EMEA, North America and APAC regions.

Bidco also believes that the Acquisition represents an exciting opportunity to combine Gresham with its portfolio company, Alveo, which Bidco acquired in January 2023 with the aim of building a global and differentiated enterprise data management and governance platform for the capital markets tech ecosystem. Alveo is an enterprise data management software platform that is uniquely focused on providing cleansing, validating and normalising market, pricing, and reference data for distribution to various systems within the post-trade processing ecosystem. Bidco views Gresham, which offers separate non-competing functionality, as an important step towards building a platform of scale, which will expand the use cases from market and pricing data to serving operational trade, position, and cash. The combination of Gresham and Alveo is expected to expand the combined business' value proposition to collect, control and ensure the quality of the critical datasets required by capital markets participants to mitigate operational and financial risk, whilst maintaining compliance with increasing regulatory scrutiny.

Gresham has a blue-chip customer base and has a track record of customer growth and in conjunction with STG and Alveo, Bidco expects to leverage its extensive global network, resources and experience to achieve greater client penetration in the end markets that Gresham currently serves.

Bidco recognises the investment and progress the Gresham management team has made over recent years, driven by organic product innovation and several acquisitions that have created a portfolio which includes next-generation, SaaS-based, mission-critical products; in particular, the development and scaling of Clareti Control and more recently, Floe, Gresham's next-generation smart bank account platform. Bidco sees Clareti Control, which has increasingly contributed a larger share of Gresham Group revenues over time, as a bespoke product in the financial services reconciliation market with robust capabilities in both inter-system reconciliations ("non-standardised" reconciliations) and cash/nostro and securities reconciliations ("standardised" reconciliations). Bidco believes Gresham, with its support, will realise its full potential. The Gresham target market, whilst challenging near term, exhibits durable market tailwinds driven by an accelerating adoption of cloud and business demand for automation solutions. Bidco also believes the additional scale from a combination with Alveo will enable a more effective sales execution whilst optimising operating costs.

Bidco believes the combination of Gresham and Alveo could enjoy accelerated growth through a common go-to-market strategy; Gresham and Alveo both focus on critical albeit distinct capital markets solutions where requisite demand is driven by regulatory compliance and requirements for risk mitigation, workflow optimisation and cost reduction through adoption of cloud software and managed services.

The combined segments for Alveo's pricing data on the one hand, and Gresham's reconciled trade data on the other, fuels essential processing systems and offers a potential for cross-sell opportunities. Bidco anticipates that the combination will enable the relevant product offerings to become embedded more deeply into capital markets workflows and further benefit from a common Data-as-a-Service (DaaS) and Managed Services infrastructure.

In summary, Bidco believes that Gresham is a highly complementary business to Alveo, with clear alignment in purpose and values, and the Acquisition is an exciting opportunity to expand and enhance the separate solutions and services offered to both companies' customers and the broader capital markets industry.

4. Recommendation

The Gresham Directors, who have been so advised by Houlihan Lokey as to the financial terms of the Acquisition, consider the terms of the Acquisition to be fair and reasonable. In providing its advice to the Gresham Directors, Houlihan Lokey has taken into account the commercial assessments of the Gresham Directors. Houlihan Lokey is providing independent financial advice to the Gresham Directors for the purposes of Rule 3 of the Takeover Code.

Accordingly, the Gresham Directors intend unanimously to recommend that Gresham Shareholders vote in favour of the Scheme at the Court Meeting and in favour of the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by way of an Offer, to accept or procure acceptance of the Offer), as the Gresham Directors who are interested in Gresham Shares have irrevocably undertaken to do in respect of their own beneficial holdings (and those of their connected persons) amounting, in aggregate, to 446,986 Gresham Shares representing approximately 0.53 per cent. of the ordinary share capital of Gresham in issue on the Last Practicable Date. Further details of these irrevocable undertakings, including the circumstances in which they cease to be binding, are set out in paragraph 9 below and in Appendix 3 to this Announcement.

5. Background to and reasons for the Gresham Directors' recommendation

Whilst evaluating the terms of the Cash Offer, the Gresham Board has considered in detail the ongoing opportunities and risks facing Gresham as a small, standalone listed entity.

The Gresham Board notes the good progress in Gresham's operational and financial performance in recent years and, in particular, the discontinuation of the lower margin legacy IT contracting services business (announced on 17 November 2023) and the strategic focus on transforming Gresham into a pure-play SaaS business. 

The Gresham Board remains confident in the execution of its strategy for Gresham and in the potential for further value creation for Gresham Shareholders over the longer term. However, it recognises that uncertainties and risks exist to the delivery of that strategy in the short to medium-term, many of which are beyond Gresham's control. In particular, the Gresham Board would highlight the current challenging nature of Gresham's end markets, which are consolidating and where customers are slower to replace legacy technologies with modern alternatives, which can impact Gresham's sales pipeline.

The Gresham Board's stated ambition to scale Gresham's core software business and become a £100 million annual recurring revenue business is reliant, not only on Gresham's ability to successfully compete for accretive acquisitions but also on significant investment in Research & Development and Sales & Marketing to maintain Gresham's competitive position, fully capitalise on innovations such as Floe and deliver consistently high levels of organic growth. The Gresham Board notes that the growth in Clareti Control ARR has slowed in recent months. Competition remains intense and the Gresham Board notes that many of Gresham's competitors are often larger, privately owned, free from the constraints and requirements of the public markets and backed with substantial financing. The Gresham Board believes that, if Gresham cannot effectively fund high levels of organic growth and participate materially in the expected consolidation of the financial services data management software market, its competitive advantage in global financial markets is likely to be impacted over the medium to long term.

On the basis of a net cash position of £4.8 million as at 31 December 2023, the Cash Offer values Gresham at 12.9 times adjusted EBITDA and 30.8 times adjusted cash EBITDA for the year ended 31 December 2023 as estimated by the Gresham Board and detailed further in paragraph 8 below. Having sought to obtain competitive alternative proposals, the Gresham Board considers the above multiples to be attractive.

In addition, the Gresham Board recognises that the market in Gresham Shares is relatively illiquid, with average daily volumes traded during the twelve-month period ended 8 April 2024 being only 107,615 Gresham Shares. This low level of liquidity can make it challenging for Gresham Shareholders to monetise their holdings in the market should they so wish.

The Gresham Board believes that the Cash Offer will provide Gresham Shareholders with the opportunity to receive an immediate and certain value per Gresham Share in cash at a fair premium (of 26.94 per cent. to the closing price of a Gresham Share on 8 April 2024, the Last Practicable Date) that may not otherwise be available and would, in any event, be subject to the successful execution of Gresham's strategy and the realisation of its longer-term growth prospects.

The Gresham Board notes that Kestrel Partners LLP, which has a representative on the Gresham Board and is Gresham's largest shareholder with an interest in approximately 23.85 per cent. of the issued Gresham Shares, is supportive of the Acquisition and has given an irrevocable undertaking to Bidco to vote in favour of the Scheme. The Gresham Board also notes that Bidco have received irrevocable undertakings and letters of intent to vote in favour of the Scheme from Gresham Shareholders, including Kestrel Partners LLP, over, in aggregate, 45.42 per cent. of the issued Gresham Shares. This level of shareholder support for the Acquisition is indicative, in the Gresham Board's opinion, of the challenges Gresham faces in optimising shareholder value as a standalone, small cap listed entity.

In summary, taking all the above into account the Gresham Board believes that the Cash Offer fairly recognises the medium-term risks and prospects of Gresham in its current form as a standalone, small cap listed entity, is in the best interests of Gresham and that Gresham Shareholders should be given this opportunity to realise value. 

In addition to the financial terms of the Acquisition, in its evaluation of Bidco as a suitable owner of Gresham from the perspective of all Gresham stakeholders, the Gresham Board has also taken into account Bidco's intentions for the business, management and employees and other stakeholders of Gresham as set out in paragraph 14 below.

The Gresham Board acknowledges the strategic rationale of combining Alveo and Gresham and notes that Bidco, through Alveo, will be aware of the obligations that go with being providers of mission critical solutions to customers regulated capital markets. The Gresham Board is pleased that Bidco has stated that the Acquisition of Gresham represents an important step towards building a differentiated platform of scale in the capital markets tech ecosystem with the potential for accelerated growth.

The Gresham Board is also pleased that Bidco attaches great importance to the skills and experience of Gresham's management and employees and recognises the important contribution that they have made to the success of Gresham to date.

The Gresham Board acknowledges that, following the Effective Date, as part of their detailed evaluation for optimising the combination of Gresham and Alveo, Bidco will seek to establish an operating structure which optimises the resource footprints of both Alveo and Gresham and which may result in some re-allocation of employees across functions and/or a reduction in headcount in certain overlapping functions in Alveo and Gresham. The Gresham Board notes that such functions potentially include central corporate and internal support functions, including Gresham's listed company functions.

Whilst the Gresham Board regrets any necessity for headcount reductions, it acknowledges the likely benefits to Gresham in the next phase of its growth and of a combination with Alveo, and anticipates ongoing Gresham employees will be able to benefit from potential new opportunities within the combined business.

The Gresham Board notes that Bidco does not have any intention of making material changes to the conditions of employment of Gresham's management or employees and will fully safeguard the existing employment rights of all Gresham employees.

Accordingly, after careful consideration, the Gresham Board intends unanimously to recommend that Gresham Shareholders vote in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting.

6. Information relating to Bidco and STG

Bidco is a private limited company incorporated in England and Wales on 19 December 2022 and is owned indirectly by funds managed or advised by STG. Bidco was formed for the purposes of the purchase of Alveo in January 2023 and is the holding company of Alveo.

STG is a strategic private equity firm with over 20 years' experience investing in enterprise software and data-centric companies. STG's portfolio is currently comprised of approximately 29 international technology companies, which collectively have more than 13,000 employees. Today STG has approximately USD 10 billion under management.

7. Information relating to Gresham

Gresham Technologies plc is a bespoke software company specialising in providing real-time solutions for data integrity and control, banking integration, payments and cash management. Gresham's award-winning Clareti software platform is highly flexible and scalable, available on-site or in the cloud, and designed to address its customers' most challenging financial control, risk management, data governance and regulatory compliance problems.

Gresham has approximately 270 customers across 30 countries, including some of the world's largest financial institutions and corporates.

Gresham was established in 1972 and the Gresham Shares were admitted to trading on the Main Market of the London Stock Exchange in 1995. Gresham is headquartered in the City of London and services its customers from offices located in the United Kingdom, Europe, North America and Asia Pacific.

For its financial year ended 31 December 2022, Gresham reported revenues of £48.7 million (2021: £37.0 million), adjusted EBITDA of £10.3 million (2021: £7.2 million) and cash EBITDA of £4.4 million (2021: £2.5 million).

Gresham will publish its annual report and audited accounts for the year ended 31 December 2023 on or prior to 30 April 2024.

8. Gresham profit estimates and current trading

8.1 Gresham profit estimates

Background

On 11 January 2024, Gresham announced a trading update (the "Trading Announcement") for FY2023 which included a statement that Gresham expected to report Adjusted EBITDA and Cash EBITDA for FY2023 at least in line with then current market expectations.

Gresham also noted in the Trading Announcement: that "Adjusted EBITDA" was defined as earnings before interest, taxation, depreciation and amortisation for continuing operations, adjusted to add back share-based payment charges and exceptional items; that "Cash EBITDA" was defined as Adjusted EBITDA less capitalised development spend and IFRS 16 lease related cash payments; and that the then market expectations for FY2023 were for Adjusted EBITDA of £11.0 million and Cash EBITDA of £4.6 million.

The above statements constitute ordinary course profit estimates for Gresham within the meaning of Note 2 of Rule 28.1 of the Takeover Code (the "Gresham Profit Estimates").

Gresham Directors' confirmation

The Gresham Directors have considered the Gresham Profit Estimates and confirm that the Gresham Profit Estimates remain valid as at the date of this Announcement. The Gresham Directors confirm that the Gresham Profit Estimates were properly compiled in the manner stated below and that the basis of accounting used is consistent with Gresham's current accounting policies, which are in accordance with IFRS.

Following discussions with Gresham's auditors during the ongoing FY2023 year end audit process, the Gresham Board is considering adjusting its approach to the recognition of software revenues from contracts where software is deployed "on premise", i.e. not hosted by the Company, from an annual to a monthly basis. Whilst no final decision has been taken, the Gresham Board notes that if such an adjustment were implemented with regards FY2023, it would have only an immaterial impact on Gresham's revenues and on the Gresham Profit Estimates and would have no impact on cashflows whatsoever.

Basis of preparation

The Gresham Profit Estimates were based on the unaudited management accounts of Gresham for FY2023 and were prepared in accordance with the Alternative Performance Measure guidelines used by the Gresham Directors to measure business performance. The Gresham Profit Estimates are not based on any assumptions.

8.2 Gresham current trading

Trading in the period since the release of the Trading Announcement has been in line with the Gresham Directors' expectations.

Following the discontinuation of its legacy sub-contracting business with effect from January 2024, Gresham has been focused on the provision of its higher margin Clareti Control solutions. The Gresham Group started the current year with over £38 million of revenue under contract, and has signed several new Clareti Control contracts since then. Gresham's current pipeline of opportunities provides adequate coverage for the remainder of the year. As previously highlighted, the Gresham Directors note that the challenging macro environment and tighter customer budgets continue to impact the sales cycle and business planning.

9. Irrevocable Undertakings and Letters of Intent

In total, including the irrevocable undertakings from the Gresham Directors described below, Bidco has received irrevocable undertakings to vote (or, where applicable, procure voting) in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by an Offer, to accept or procure acceptance of such Offer) in respect of, in aggregate, 24,772,833 Gresham Shares, representing approximately 29.54 per cent. of the existing issued ordinary share capital of Gresham as at the Last Practicable Date.

The Gresham Directors have irrevocably undertaken to vote (or, where applicable, procure voting) in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by an Offer, to accept or procure acceptance of such Offer) in respect of their own beneficial holdings (and those of their connected persons) amounting, in aggregate, to 446,986 Gresham Shares representing approximately 0.53 per cent. of the existing ordinary share capital of Gresham as at the Last Practicable Date.

In addition to the irrevocable undertakings from Gresham Directors described above, Bidco has also received irrevocable undertakings to vote (or, where applicable, procure voting) in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by an Offer, to accept or procure acceptance of such Offer) from Kestrel Partners LLP in respect of 20,004,573 Gresham Shares (the "Kestrel Irrevocable") and Herald Investment Trust plc in respect of 4,321,274 Gresham Shares (the "Herald Irrevocable"), representing in aggregate approximately 29.00 per cent. of the existing issued ordinary share capital of Gresham as at as at the Last Practicable Date.

These irrevocable undertakings cease to be binding, inter alia, on the earlier of the Long-Stop Date and the date on which the Acquisition (whether implemented by way of a Scheme or an Offer) is withdrawn or lapses in accordance with its terms, save where such lapse or withdrawal is as a result of Bidco exercising its right to implement the Acquisition by way of an Offer rather than by way of a Scheme or vice versa in accordance with the Takeover Code. The Kestrel Irrevocable will also cease to be binding if any third party announces a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code for all of the issued and to be issued ordinary share capital of Gresham which puts a value on each Gresham Share of at least 188 pence, and by no later than 5:00pm on the fifth business day after the date on which such an offer is made, the consideration per Gresham Share offered by Bidco is not increased by Bidco such that Bidco's offer is of a value equal to or exceeding such higher competing offer made by the relevant third party. The Herald Irrevocable will also cease to be binding if any third party announces a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code for all of the issued and to be issued ordinary share capital of Gresham which puts a value on each Gresham Share of at least 188 pence, and by no later than 5:00pm on the fifth business day after the date on which such an offer is made, the consideration per Gresham Share offered by Bidco is not increased by Bidco such that Bidco's offer is of a value equal to or exceeding 10% above such higher competing offer made by the relevant third party.

Bidco has also received non-binding letters of intent from Schroder Investment Management Limited, Amati Global Investors Limited and J O Hambro Capital Management Limited to vote in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by an Offer, to accept or procure acceptance of such Offer) in respect of, in aggregate, 13,325,000 Gresham Shares, representing approximately 15.89 per cent. of the existing issued ordinary share capital of Gresham as at the Last Practicable Date.

Therefore, Bidco has received irrevocable undertakings and letters of intent in respect of, in aggregate, 38,097,833 Gresham Shares, representing approximately 45.42 per cent. of the existing issued ordinary share capital of Gresham as at the Last Practicable Date.

Further details of these irrevocable undertakings (including the circumstances in which they cease to be binding) are set out in Appendix 3 to this Announcement.

10. Financing of the Acquisition

The cash consideration payable by Bidco pursuant to the Acquisition will be financed through a combination of equity and debt financing. The equity financing will be provided by the STG Funds and the remaining funding is to be provided by debt financing available to Bidco.

William Blair, as financial adviser to Bidco, is satisfied that sufficient financial resources are available to Bidco to enable it to satisfy in full the cash consideration payable to Gresham Shareholders under the terms of the Acquisition.

Further information on the financing of the Acquisition will be set out in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document).

11. Offer-related Arrangements

11.1 Confidentiality Agreement

STG and Gresham have entered into a mutual confidentiality agreement in relation to the Acquisition dated 23 January 2024 (the "Confidentiality Agreement"), pursuant to which STG has undertaken, amongst other things, to: (i) keep confidential information relating to Gresham and the Acquisition and not to disclose it to third parties (other than certain permitted parties) unless required by a court of competent jurisdiction or by any requirement or request of any competent judicial, government or regulatory body or in order to comply with the FCA's Listing Rules, Disclosure Guidance and Transparency Rules, the Market Abuse Regulation or any other laws or regulations or the provisions of the Takeover Code; and (ii) use the confidential information only in connection with the Acquisition. These confidentiality obligations will remain in force until the earlier of completion of the Acquisition and 12 months from the date on which Gresham publicly releases the announcement of its audited results for the financial year ended 31 December 2023. The Confidentiality Agreement contains standstill provisions which restricted STG and its connected persons from acquiring or offering to acquire interests in securities of Gresham; those restrictions ceased to apply upon the making of this Announcement.

12. Structure of and Conditions to the Acquisition

Structure of the Acquisition

It is intended that the Acquisition will be implemented by way of a Court-sanctioned scheme of arrangement between Gresham and the Scheme Shareholders, under Part 26 of the Companies Act 2006 (although Bidco reserves the right to implement the Acquisition by way of an Offer, subject to the consent of the Panel). The procedure involves, among other things, an application by Gresham to the Court to sanction the Scheme.

The purpose of the Scheme is to provide for Bidco to become the owner of the entire issued and to be issued ordinary share capital of Gresham. This is to be achieved by the transfer of Gresham Shares to Bidco in consideration for which Gresham Shareholders will receive the cash consideration due under the Cash Offer, to be effected pursuant to the Scheme. The transfer to Bidco of the Gresham Shares is intended to result in Gresham becoming a wholly-owned subsidiary of Bidco.

Conditions to the Acquisition

The Scheme and Acquisition will be subject to the Conditions and certain further terms referred to in Appendix 1 to this Announcement and to be set out in the Scheme Document when issued. In particular, the Scheme will only become Effective if, among other things, the following events occur on or before 11.59pm (London time) on the Long-Stop Date:

Additionally, the Scheme will lapse if, amongst other things:

Bidco may only invoke a Condition so as to cause the Acquisition not to proceed, lapse or to be withdrawn with the consent of the Panel. Certain Conditions are not subject to this requirement. Further details are set out in Parts A and B of Appendix 1 to this Announcement. Once the necessary approvals from Gresham Shareholders have been obtained and the other Conditions have been satisfied or (where applicable) waived and the Scheme has been approved by the Court, the Scheme will become Effective upon delivery of the Scheme Court Order to the Registrar of Companies. Subject to, amongst other things, the satisfaction of the Conditions, the Scheme is expected to become Effective during the third quarter of 2024.

Upon the Scheme becoming Effective: (i) it will be binding on all Scheme Shareholders, irrespective of whether or not they attended or voted at the Court Meeting or the General Meeting (and if they attended and voted, whether or not they voted in favour); and (ii) share certificates in respect of Gresham Shares will cease to be valid and entitlements to Gresham Shares held within the CREST system will be cancelled.

Any Gresham Shares issued before the Scheme Record Time will be subject to the terms of the Scheme. The Special Resolution to be proposed at the General Meeting will, amongst other matters, provide that the Articles be amended to incorporate provisions requiring any Gresham Shares issued after the Scheme Record Time (other than to Bidco and/or their nominees) to be automatically transferred to Bidco on the same terms as the Acquisition (other than terms as to timings and formalities). The provisions of the Articles (as amended) will avoid any person (other than Bidco and their nominees) holding shares in the capital of Gresham after the Effective Date.

If the Scheme does not become Effective on or before 11.59pm (London time) on the Long-Stop Date, it will lapse and the Acquisition will not proceed (unless Bidco and Gresham otherwise agree and the Panel otherwise consents).

The Scheme Document will include full details of the Scheme, together with notices of the Court Meeting and the General Meeting. The Scheme Document will also contain the expected timetable for the Acquisition and will specify the necessary actions to be taken by Gresham Shareholders. It is expected that the Scheme Document, together with the Forms of Proxy and the Form of Election, will be posted to Gresham Shareholders and, for information only, to persons with information rights and to holders of options and awards granted under the Gresham Share Plans within 28 days of this Announcement (or such later time as Bidco and Gresham and the Panel may agree).

13. Disclosure of Interests in Gresham

Save as disclosed in this Announcement, as at close of business on 8 April 2024 (being the Last Practicable Date) neither Bidco, nor any of its directors, nor, so far as Bidco is aware, any person acting in concert (within the meaning of the Takeover Code) with Bidco has:

'Interests in securities' for these purposes arise, in summary, when a person has long economic exposure, whether absolute or conditional, to changes in the price of securities (and a person who only has a short position in securities is not treated as interested in those securities). In particular, a person will be treated as having an 'interest' by virtue of the ownership, voting rights or control of securities, or by virtue of any agreement to purchase, option in respect of, or derivative referenced to securities.

14. Strategic plans with regard to the business, directors, management, employees, pensions and locations of the Gresham Group

14.1 Strategic plans for Gresham

As set out in paragraph 5 above, Bidco believes that the Acquisition has a compelling strategic rationale and Bidco plans to integrate Gresham's business with Alveo's following the Effective Date.

Prior to this Announcement, consistent with market practice, Bidco has been granted customary access to Gresham's senior management and company information for the purposes of acquisition-level business due diligence. However, Bidco has not yet had access to sufficiently detailed operational information to formulate a detailed strategy for its plans to integrate Gresham with Alveo.

Following the Acquisition becoming Effective, Bidco, in conjunction with Alveo, intends to work with Gresham's senior management to undertake a more detailed evaluation of Gresham and its operations and how to optimise the combination of the two businesses (the "Evaluation"). Whilst the parameters of the Evaluation have not yet been finalised, it is expected to include a review of Gresham's customers and products, the roles and responsibilities of its employees, Gresham's operating locations and its management incentivisation arrangements. Bidco expects that the Evaluation will be completed within approximately 6 months from the Effective Date. The purpose of the Evaluation will be to validate the assumptions underlying Bidco's investment thesis for the combination of Gresham and Alveo, which has been developed through the management meetings held as part of its acquisition-level business due diligence review.

14.2 Headquarters, locations, fixed assets and research and development

Bidco plans to integrate Gresham's business with Alveo's following the Effective Date.

This is expected to involve, amongst other things, a rationalisation of Gresham's physical operating locations (including the consolidation of Alveo and Gresham's headquarters into, and headquarter functions within, a single office location), by way of non-renewal of leases upon expiry, lease exits and / or exploring the possibility of sub-letting, with the objective of reducing rental and lease expenses over time. As part of the Evaluation, Bidco will review and consider the most appropriate timing and strategy for the consolidation of Gresham's operating locations. Bidco expects to rationalise a minority of Gresham's locations internationally, and may consider, over time, a combination of office locations with Alveo in the UK where this can be achieved without impacting the culture and operations of the business, and in line with lease renewal dates. Gresham does not have significant fixed assets (other than premises) and Bidco envisages no material redeployment of the fixed assets of Gresham.

As part of the Evaluation, Bidco intends to review both Alveo and Gresham's research and development functions in order to invest in the products of both companies, to support more effectively Alveo and Gresham's (the "Combined Group") customers globally. Bidco values highly the long-standing customer relationships of both companies and is deeply invested in ensuring the success of these customers.

14.3 Employees and Management

Bidco attaches great importance to the skills and experience of Gresham's management and employees and recognises the important contribution that the management team and employees of Gresham have made to the success of Gresham. As part of the Evaluation, Bidco intends to discuss with, and further draw upon, Gresham management's experience to gain a full understanding of the organisation, and the roles and responsibilities of employees within the business in order to ensure a successful combination with Alveo.

Bidco does not have any intention of making material changes to the conditions of employment of the Gresham's employees or management. Following the Effective Date, Bidco intends to review the operations of Gresham. This will include an assessment of any overlap of roles currently undertaken by Gresham and Alveo personnel. Bidco intends to retain the best talent across the Combined Group to deliver its enhanced growth strategy. Bidco therefore cannot be certain what impact there will be on the employment of, and the balance of skills and functions of the management and employees of the Combined Group. The finalisation and implementation of workforce integration will be subject to detailed and comprehensive planning as part of the Evaluation referred to above. This process is expected to result in some headcount reductions and / or optimisation, which may be substantial in the context of the Combined Group. Bidco confirms that it intends to fully safeguard the existing statutory employment rights of all of Gresham's management and employees.

In addition, certain corporate, administrative and support functions, related to Gresham's status as a publicly traded company, may no longer be required on a standalone basis, or else may be reduced in scope.

It is intended that, upon the Acquisition becoming Effective, each of Gresham's Non-Executive Directors shall resign from his office as a director of Gresham.

14.4 Existing rights and pensions

As noted above, Bidco intends to fully safeguard the existing employment rights of the management and employees of Gresham, including in relation to pensions, in accordance with applicable law.

Gresham makes contributions to its workplace pension plan operated by Aviva on behalf of qualifying employees, and Bidco intends that these arrangements will remain in place. Bidco does not intend to make any material changes to this pension plan.

No member of the Gresham Group participates in a defined benefit pension scheme.

14.5 Incentivisation arrangements

Following the Effective Date, Bidco intends to review the management, governance and incentive structure of Gresham.

Bidco has not entered into, and has not had discussions on the terms of, any form of incentivisation arrangement with members of Gresham's management. Any discussions with Gresham's management about the terms, content, scope or form of such incentivisation arrangements will not take place until after the Effective Date.

Bidco may have such discussions for certain members of the Gresham management team following the Effective Date in order that it may put in place incentive arrangements for certain members of the Gresham management team following completion of the Acquisition to achieve short-term and long-term objectives, commensurate with the position, relative contribution of the individual to the overall company, compensation history and private company norms.

14.6 Trading facilities

Gresham Shares are currently listed on the Official List and admitted to trading on the London Stock Exchange. As set out in paragraph 18 below, it is intended that on or shortly after the Effective Date a request will be made to the London Stock Exchange to cancel trading in Gresham Shares on the Main Market and to de-list Gresham from the Official List, following which Gresham would be re-registered as a private limited company.

None of the statements in this paragraph 14 are "post-offer undertakings" for the purposes of Rule 19.5 of the Takeover Code.

15. Gresham Share Plans

Participants in the Gresham Share Plans and in the Invested Bonus Share Plan will be contacted regarding the effect of the Acquisition on their rights under the Gresham Share Plans and, in the case of the Gresham Share Plans an appropriate proposal will be made to such participants to the extent required pursuant to Rule 15 of the Takeover Code in due course. Further details of the impact of the Scheme on each of the Gresham Share Plans and the Invested Bonus Share Plan and the proposals shall be included in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document).

16. Opening Position Disclosure

In connection with the Acquisition, Bidco will make a public Opening Position Disclosure setting out details of its interests or short positions in, or rights to subscribe for, any relevant securities of Gresham by no later than 12 noon on 23 April 2024.

Bidco's Opening Position Disclosure will include details of any interests or short positions in, or rights to subscribe for, any relevant securities of Gresham held by all persons acting in concert with Bidco.

17. The Scheme

It is intended that the Acquisition will be effected by means of the Scheme between Gresham and the Scheme Shareholders (although Bidco reserves the right to implement the Acquisition by way of an Offer, subject to the consent of the Panel).

The purpose of the Scheme is to provide for Bidco to become owner of the entire issued and to be issued ordinary share capital of Gresham. This is to be achieved by the transfer of the Scheme Shares held by Scheme Shareholders to Bidco, in consideration for which the Scheme Shareholders will receive the cash consideration on the basis set out in paragraph 2 of this Announcement.

The Acquisition shall be subject to the Conditions and further terms set out below and in Appendix 1 to this Announcement and to full terms and conditions to be set out in the Scheme Document. The Scheme shall only become Effective, if, among other things, the following events occur on or before 11.59 p.m. on the Long-Stop Date (or such later date as Bidco and Gresham may, with the consent of the Panel, agree and, if required, as the Court may approve):

The Scheme shall lapse (under the authority of Rule 13.5(b) of the Takeover Code) if:

provided, however, that the deadlines for the timing of the Court Meeting, the General Meeting and the Scheme Court Hearing as set out above may be waived by Bidco, and the deadline for the Scheme to become effective may be extended by agreement between Gresham and Bidco (with the consent of the Panel, and (if required) as the Court may allow).

As set out in Appendix 1 to this Announcement, the Acquisition is conditional, amongst other things, on the receipt or waiver of foreign investment clearance in the United Kingdom, the United States, Australia and Luxembourg.

The Scheme Document will include full details of the Scheme. It is expected that the Scheme Document, containing further information about the Acquisition and notices of the Meetings, together with the associated forms of proxy, will be despatched to Gresham Shareholders as soon as reasonably practicable and, in any event, within 28 days of this Announcement (or such later time as Bidco, Gresham and the Panel may agree) and the Meetings are expected to be held shortly thereafter. An expected timetable of key events relating to the Acquisition will be provided in the Scheme Document.

If any Condition in paragraph 2 of Appendix 1 to this Announcement is not capable of being satisfied by the date specified therein, Bidco shall make an announcement through a Regulatory Information Service as soon as practicable and, in any event, by not later than 7.00 a.m. (London time) on the Business Day following the date so specified, stating whether Bidco has invoked that Condition, (where applicable) waived that Condition or, with the agreement of Gresham, specified a new date by which that Condition must be satisfied.

Once the necessary approvals from Gresham Shareholders have been obtained and the other Conditions have been satisfied or (where applicable) waived and the Scheme has been approved by the Court, the Scheme will become Effective upon delivery of the Scheme Court Order to the Registrar of Companies. Subject to, amongst other things, the satisfaction of the Conditions, the Scheme is expected to become Effective during the third quarter of 2024. If the Scheme does not become Effective on or before the Long-Stop Date, it will lapse and the Acquisition will not proceed (unless Bidco and Gresham otherwise agree, with the consent of the Panel).

Upon the Scheme becoming Effective: (i) it will be binding on all Gresham Shareholders, irrespective of whether or not they attended or voted at the Meetings (and if they attended and voted, whether or not they voted in favour); and (ii) share certificates in respect of Gresham Shares will cease to be valid and entitlements to Gresham Shares held within the CREST system will be cancelled. The consideration for the Acquisition (pursuant to the Cash Offer) will be despatched to Scheme Shareholders no later than 14 days after the Effective Date in accordance with the requirements of the Takeover Code.

Any Gresham Shares issued before the Scheme Record Time will be subject to the terms of the Scheme and any Gresham Shares issued following the Scheme Record Time will be transferred to Bidco (or as it may direct) in exchange for the same consideration as would be due under the Scheme (in each case, subject to the Scheme becoming Effective in accordance with its terms). The Special Resolution to be proposed at the General Meeting will, amongst other matters, provide that the Articles be amended to incorporate provisions requiring any Gresham Shares issued after the Scheme Record Time (other than to Bidco and/or their nominees) to be automatically transferred to Bidco on the same terms as the Acquisition (other than terms as to timings and formalities). The provisions of the Articles (as amended) will avoid any person (other than Bidco and their nominees) holding shares in the capital of Gresham after the Effective Date.

Bidco reserves the right to elect to implement the Acquisition by way of an Offer as an alternative to the Scheme (subject to the consent of the Panel). In such event, the Acquisition will be implemented on substantially the same terms, so far as applicable, as those which will apply to the Scheme, subject to appropriate amendments to reflect, among other things, the change in method of effecting the Acquisition (including, without limitation: (i) the inclusion of an acceptance condition set at 90 per cent. of the Gresham Shares to which such Offer relates (or such other percentage as Bidco may, subject to the rules of the Takeover Code and with the consent of the Panel, decide); and (ii) those required by, or deemed appropriate by, Bidco under applicable law). Further, if sufficient acceptances of such Offer are received and/or sufficient Gresham Shares are otherwise acquired, it is the intention of Bidco to apply the provisions of the Companies Act 2006 to acquire compulsorily any outstanding Gresham Shares to which such Offer relates.

The Scheme will be governed by English law and will be subject to the jurisdiction of the Court. The Scheme will be subject to the applicable requirements of the Takeover Code, the Panel, the London Stock Exchange, the Financial Conduct Authority and the Registrar of Companies.

18. Cancellation of trading and re-registration

Gresham Shares are currently admitted to trading on the Main Market of the London Stock Exchange. It is intended that, shortly before the Effective Date, an application will be made to the London Stock Exchange for the cancellation of trading in Gresham Shares on the London Stock Exchange's Main Market for listed securities and to the Financial Conduct Authority for the cancellation of the listing of Gresham Shares on the Official List, in each case to take effect on or shortly after the Effective Date.

It is expected that the last day of dealings in Gresham Shares on the Main Market of the London Stock Exchange will be the date of the Scheme Court Hearing and that no transfers will be registered after 6.00 p.m. (London time) on that date.

On the Effective Date, share certificates in respect of Gresham Shares will cease to be valid and entitlements to Gresham Shares held within the CREST system will be cancelled.

It is also proposed that, on or shortly after the Effective Date and after the Gresham Shares are delisted, Gresham will be re-registered as a private limited company under the relevant provisions of the Companies Act 2006. A resolution to approve the re-registration will be proposed at the General Meeting.

19. Consents

Each of William Blair, Houlihan Lokey and Singer Capital Markets have given and not withdrawn their consent to the publication of this Announcement with the inclusion herein of the references to their names and (where applicable) advice in the form and context in which they appear.

20. Overseas Shareholders

The availability of the Acquisition to Gresham Shareholders who are not resident in and citizens of the United Kingdom may be affected by the laws and/or regulations of the relevant jurisdiction in which they are located or in which they are citizens. Therefore, any persons who are subject to the laws and/or regulations of any jurisdiction other than the United Kingdom should inform themselves about and observe any applicable legal or regulatory requirements in their jurisdiction. Further details in relation to Overseas Shareholders are set out below in this Announcement and will be set out in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document). If you are in any doubt you should consult your professional adviser in the relevant jurisdiction without delay.

21. Documents available for inspection

Copies of the following documents will by no later than 12 noon on the first Business Day following the date of this Announcement be published on Gresham's website at https://www.greshamtech.com/invest-in-us, in each case subject to certain restrictions relating to persons resident in Restricted Jurisdictions:

The contents of the website referred to in this Announcement are not incorporated into and do not form part of this Announcement.

22. General

The Acquisition will be made on the terms and subject to the Conditions set out in Appendix 1 to this Announcement, and to the full terms and conditions to be set out in the Scheme Document. The formal Scheme Document comprising the Cash Offer to Gresham Shareholders will be sent to Gresham Shareholders within 28 days of this Announcement (or on such later date as may be agreed between Bidco and Gresham with the consent of the Panel). The sources and bases of calculation of certain information contained in this Announcement are set out in Appendix 2 to this Announcement. Details of irrevocable undertakings and letters of intent received by Bidco are set out in Appendix 3 to this Announcement. Certain terms used in this Announcement are defined in Appendix 4 to this Announcement.

Enquiries:

Paul Hastings (Europe) LLP is acting as legal adviser to STG and Bidco.

Taylor Wessing LLP is acting as legal adviser to Gresham.

Important notices relating to financial advisers

William Blair International, Limited ("William Blair"), which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting exclusively for STG and Bidco and no one else in connection with the subject matter of this Announcement and will not be responsible to anyone other than STG and Bidco for providing the protections afforded to the clients of William Blair, or for providing advice in connection with the subject matter of this Announcement. Neither William Blair nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of William Blair in connection with the subject matter of this Announcement, any statement contained herein or otherwise.

Houlihan Lokey Advisory Limited ("Houlihan Lokey"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively as financial adviser and Rule 3 adviser to Gresham and no one else in connection with the matters set out in this Announcement and will not be responsible to anyone other than Gresham for providing the protections afforded to clients of Houlihan Lokey or for providing advice in relation to matters referred to in this Announcement. Neither Houlihan Lokey nor any of its subsidiaries, branches or affiliates owes or accepts any duty, liability or responsibility whatsoever (whether direct or indirect, whether in contract, in tort, under statute or otherwise) to any person who is not a client of Houlihan Lokey in connection with this Announcement, any statement contained herein or otherwise.

Singer Capital Markets Advisory LLP ("Singer Capital Markets"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for Gresham and no-one else in connection with the subject matter of this Announcement and will not be responsible to anyone other than Gresham for providing the protections afforded to clients of Singer Capital Markets or for providing advice in relation to the subject matter of this Announcement or any other matter referred to in this Announcement.

Each of William Blair, Houlihan Lokey and Singer Capital Markets have given and not withdrawn their consent to the publication of this Announcement with the inclusion herein of the references to their respective names and (where applicable) advice in the form and context in which they appear.

Further information

This Announcement is for information purposes only and is not intended to, and does not, constitute or form part of any offer or inducement to sell or an invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities or the solicitation of an offer to buy any securities, any vote or approval in any jurisdiction pursuant to the Acquisition or otherwise. The Acquisition will be implemented solely pursuant to the terms of the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document), which will contain the full terms and conditions of the Acquisition, including details of what action is required from Gresham Shareholders in respect of the Acquisition. Any decision in respect of, or other response to, the Acquisition should be made only on the basis of the information in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document).

Gresham and Bidco shall prepare the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document) to be distributed to Gresham Shareholders. Gresham and Bidco urge Gresham Shareholders to read the Scheme Document in its entirety (or, if the Acquisition is implemented by way of an Offer, the Offer Document) when it becomes available because it will contain important information relating to the Acquisition including details of how to vote in respect of the Scheme.

This Announcement does not constitute a prospectus or prospectus equivalent document.

Bidco reserves the right to elect to implement the Acquisition by way of an Offer as an alternative to the Scheme (subject to the Panel's consent). In such event, the Acquisition will be implemented on substantially the same terms, so far as applicable, as those which will apply to the Scheme, subject to appropriate amendments to reflect, among other things, the change in method of effecting the Acquisition (including, without limitation: (i) the inclusion of an acceptance condition set at 90 per cent. of the Gresham Shares to which such Offer relates (or such other percentage as Bidco may, subject to the rules of the Takeover Code and with the consent of the Panel, decide); and (ii) those required by, or deemed appropriate by, Bidco under applicable law). Further, if sufficient acceptances of such Offer are received and/or sufficient Gresham Shares are otherwise acquired, it is the intention of Bidco to apply the provisions of Chapter 3 of Part 28 of the Companies Act 2006 to acquire compulsorily any outstanding Gresham Shares to which such Offer relates.

If you are in any doubt about the contents of this Announcement or the action you should take, you are recommended to seek your own independent financial advice immediately from your stockbroker, bank manager, solicitor, accountant or independent financial adviser duly authorised under the Financial Services and Markets Act 2000 (as amended) if you are resident in the United Kingdom or, if not, from another appropriately authorised independent financial adviser.

Overseas Shareholders

This Announcement has been prepared in accordance with and for the purpose of complying with the laws of England and Wales, the Takeover Code, the Market Abuse Regulation and the Disclosure Guidance and Transparency Rules and information disclosed may not be the same as that which would have been disclosed if this Announcement had been prepared in accordance with the laws of jurisdictions outside England.

The release, publication or distribution of this Announcement in or into certain jurisdictions other than the United Kingdom may be restricted by law and therefore any persons who are subject to the laws of any jurisdiction other than the United Kingdom should inform themselves of, and observe, any applicable requirements of their jurisdictions.

The availability of the Acquisition to Gresham Shareholders who are not resident in and citizens of the United Kingdom may be affected by the laws and/or regulations of the relevant jurisdictions in which they are located or of which they are citizens. Persons who are not resident in and citizens of the United Kingdom should inform themselves of, and observe, any applicable legal or regulatory requirements of their jurisdictions. In particular, the ability of persons who are not resident in and citizens of the United Kingdom to vote their Scheme Shares with respect to the Scheme at the Court Meeting, or to execute and deliver forms of proxy appointing another person to vote at the Court Meeting on their behalf, may be affected by the laws of the relevant jurisdictions in which they are located or of which they are a citizen. Gresham Shareholders who are in any doubt regarding such matters should consult an appropriate independent financial adviser in their relevant jurisdiction without delay. Any failure to comply with the applicable restrictions may constitute a violation of the securities laws of any such jurisdiction. To the fullest extent permitted by applicable law, the companies and persons involved in the Acquisition disclaim any responsibility or liability for the violation of such restrictions by any person.

Unless otherwise determined by Bidco or required by the Takeover Code, and permitted by applicable law and regulation, participation in the Acquisition will not be made available, directly or indirectly, in, into or from a Restricted Jurisdiction where to do so would violate the laws in that jurisdiction and no person may vote in favour of the Acquisition by any such use, means, instrumentality or from within a Restricted Jurisdiction or any other jurisdiction if to do so would constitute a violation of the laws of that jurisdiction. Accordingly, copies of this Announcement and any formal documentation relating to the Acquisition are not being, and must not be, directly or indirectly, mailed or otherwise forwarded, distributed or sent in, into or from any Restricted Jurisdiction and persons receiving this Announcement and all such documents relating to the Acquisition (including, without limitation, agents, custodians, nominees and trustees) must not, directly or indirectly, mail or otherwise forward, distribute or send them in, into or from any Restricted Jurisdiction. Doing so may render invalid any related purported vote in respect of the Acquisition. If the Acquisition is implemented by way of an Offer (unless otherwise permitted by applicable law and regulation), the Offer may not be made directly or indirectly, in or into, or by the use of mails or any means or instrumentality (including, but not limited to, facsimile, e-mail or other electronic transmission, telex or telephone) of interstate or foreign commerce of, or of any facility of a national, state or other securities exchange of, any Restricted Jurisdiction and the Offer may not be capable of acceptance by any such use, means, instrumentality or facilities.

Further details in relation to Overseas Shareholders will be contained in the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document).

Notice to US investors in Gresham

Gresham Shareholders in the United States should note that the Acquisition relates to the shares of an English company and is proposed to be made by means of a scheme of arrangement provided for under, and governed by, the laws of England and Wales.

Neither the proxy solicitation nor the tender offer rules under the U.S. Securities Exchange Act of 1934, as amended (the "US Exchange Act") will apply to the Scheme. Moreover, the Scheme will be subject to the disclosure and procedural requirements and practices applicable in the United Kingdom to schemes of arrangement, which differ from the disclosure and procedural requirements of US tender offer and proxy solicitation rules. If, in the future and subject to the consent of the Panel, Bidco exercises the right to implement the Acquisition by way of an Offer and determines to extend the offer into the United States, the Acquisition will be made in compliance with applicable United States laws and regulations, including any applicable exemptions under the US Exchange Act. Such an Offer would be made in the United States by Bidco and no one else. In accordance with normal United Kingdom practice and consistent with Rule 14e-5 under the US Exchange Act, Bidco, certain affiliated companies and the nominees or brokers (acting as agents) may make certain purchases of, or arrangements to purchase, shares in Gresham outside such Offer during the period in which such Offer would remain open for acceptance. If such purchases or arrangements to purchase were to be made they would be made outside the United States either in the open market at prevailing prices or in private transactions at negotiated prices and would comply with applicable law, including, to the extent applicable, the US Exchange Act. Any information about such purchases will be disclosed as required in the United Kingdom, will be reported to a Regulatory Information Service and will be available on the London Stock Exchange website at www.londonstockexchange.com.

The financial information included in this Announcement and the Scheme Document (or, if the Acquisition is implemented by way of an Offer, the Offer Document) has been or will have been prepared in accordance with generally accepted accounting principles of the United Kingdom and thus may not be comparable to the financial information of US companies or companies whose financial statements are prepared in accordance with generally accepted accounting principles in the United States ("US GAAP"). US GAAP differs in certain significant respects from accounting standards applicable in the United Kingdom. None of the financial information in this document has been audited in accordance with auditing standards generally accepted in the United States or the auditing standards of the Public Company Accounting Oversight Board (United States).

Neither the Acquisition nor this Announcement have been approved or disapproved by the US Securities and Exchange Commission, any state securities commission in the United States or any other US regulatory authority, nor have any such authorities passed upon or determined the adequacy

or accuracy of the information contained in this Announcement or the merits of the Acquisition. Any representation to the contrary is a criminal offence in the United States.

The receipt of consideration by a US holder for the transfer of its Gresham Shares pursuant to the Acquisition may be a taxable transaction for US federal income tax purposes and under applicable US state and local, as well as non-US and other, tax laws. Each Gresham Shareholder is urged to consult their independent professional adviser immediately regarding the tax consequences of the Acquisition applicable to them, including under applicable US federal, state and local, as well as non-US and other, tax laws.

It may be difficult for US holders of Gresham Shares to enforce their rights and any claim arising out of the US federal laws or to enforce against them a judgment of a US court predicated upon the securities laws of the United Kingdom, since Bidco and Gresham are incorporated in a non-US jurisdiction, and some or all of their officers and directors may be residents of countries other than the United States. US holders of Gresham Shares may not be able to sue a non-US company or its officers or directors in a non-US court for violations of the US securities laws. Further, it may be difficult to compel a non-US company and its affiliates to subject themselves to a US court's judgment.

Cautionary note regarding forward-looking statements

This Announcement (including information incorporated by reference in this Announcement), oral statements made regarding the Acquisition, and other information published by Bidco and Gresham contain certain statements which are, or may be deemed to be, "forward-looking statements". Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of the management of Bidco and Gresham about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.

The forward-looking statements contained in this Announcement include statements relating to the expected effects of the Acquisition on Bidco and Gresham (including their future prospects, developments and strategies), the expected timing and scope of the Acquisition and other statements other than historical facts. Forward-looking statements often, but not always, use words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", "hope", "aims", "continue", "will", "may", "should", "would", "could", or other words of similar meaning or derivatives thereof. These statements are based on assumptions and assessments made by Gresham and/or Bidco in light of their experience and their perception of historical trends, current conditions, future developments and other factors they believe appropriate. By their nature, forward-looking statements involve risk and uncertainty, because they relate to events and depend on circumstances that will occur in the future and the factors described in the context of such forward-looking statements in this Announcement could cause actual results and developments to differ materially from those expressed in or implied by such forward-looking statements and as such are qualified in their entirety. These factors include, but are not limited to: the ability to complete the Acquisition; the ability to obtain requisite regulatory and shareholder approvals and the satisfaction of other Conditions on the proposed terms and schedule; changes in the global political, economic, business and competitive environments and in market and regulatory forces; changes in future exchange and interest rates; changes in tax rates; future business combinations or disposals; changes in general economic and business conditions; changes in the behaviour of other market participants; changes in the anticipated benefits from the proposed transaction not being realised as a result of changes in general economic and market conditions in the countries in which Bidco and Gresham operate, weak, volatile or illiquid capital and/or credit markets, changes in, the degree of competition in the geographic and business areas in which Bidco and Gresham operate and changes in laws or in supervisory expectations or requirements.

Forward-looking statements may include statements relating to the following: (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies and the expansion and growth of Gresham's operations and potential synergies resulting from the Acquisition; and (iii) the effects of global economic conditions and governmental regulation on Gresham's business.

Such forward-looking statements involve known and unknown risks and uncertainties that could significantly affect expected results and are based on certain key assumptions. Many factors may cause the actual results, performance or achievements of Gresham to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These factors include changes in the global, political, economic, business, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates and future business combinations or disposals.

No member of Gresham, nor any of its associates, directors, officers, employees or advisers, provides any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this Announcement will actually occur.

Although it is believed that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct and you are therefore cautioned not to place any reliance on these forward-looking statements which speak only as at the date of this Announcement. Neither Gresham nor Bidco assumes any obligation to update or correct the information contained in this Announcement (whether as a result of new information, future events or otherwise), except as required by applicable law.

Dealing and opening position disclosure requirements

Under Rule 8.3(a) of the Takeover Code, any person who is interested in one per cent. or more of any class of relevant securities of an offeree company or of any securities exchange offeror (being any offeror other than an offeror in respect of which it has been announced that its offer is, or is likely to be, solely in cash) must make an Opening Position Disclosure following the commencement of the offer period and, if later, following the announcement in which any securities exchange offeror is first identified.

An Opening Position Disclosure must contain details of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror(s). An Opening Position Disclosure by a person to whom Rule 8.3(a) applies must be made by no later than 3.30 p.m. (London time) on the 10th Business Day following the commencement of the offer period and, if appropriate, by no later than 3.30 p.m. (London time) on the 10th Business Day following the announcement in which any securities exchange offeror is first identified. Relevant persons who deal in the relevant securities of the offeree company or of a securities exchange offeror prior to the deadline for making an Opening Position Disclosure must instead make a Dealing Disclosure.

Under Rule 8.3(b) of the Takeover Code, any person who is, or becomes, interested in one per cent. or more of any class of relevant securities of the offeree company or of any securities exchange offeror must make a Dealing Disclosure if the person deals in any relevant securities of the offeree company or of any securities exchange offeror. A Dealing Disclosure must contain details of the dealing concerned and of the person's interests and short positions in, and rights to subscribe for, any relevant securities of each of (i) the offeree company and (ii) any securities exchange offeror, save to the extent that these details have previously been disclosed under Rule 8. A Dealing Disclosure by a person to whom Rule 8.3(b) applies must be made by no later than 3.30 p.m. (London time) on the Business Day following the date of the relevant dealing. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire or control an interest in relevant securities of an offeree company or a securities exchange offeror, they will be deemed to be a single person for the purpose of Rule 8.3.

Opening Position Disclosures must also be made by the offeree company and by any offeror and Dealing Disclosures must also be made by the offeree company, by any offeror and by any persons acting in concert with any of them (see Rules 8.1, 8.2 and 8.4). Details of the offeree and offeror companies in respect of whose relevant securities Opening Position Disclosures and Dealing Disclosures must be made can be found in the Disclosure Table on the Takeover Panel's website at www.thetakeoverpanel.org.uk, including details of the number of relevant securities in issue, when the offer period commenced and when any offeror was first identified. You should contact the Panel's Market Surveillance Unit on +44 (0)20 7638 0129 if you are in any doubt as to whether you are required to make an Opening Position Disclosure or a Dealing Disclosure.

Publication on a website

In accordance with Rule 26.1 of the Takeover Code, a copy of this Announcement and the documents required to be published under Rule 26 of the Takeover Code will be made available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on Gresham's website at www.greshamtech.com/invest-in-us by no later than 12 noon (London time) on the first Business Day following the date of this Announcement. For the avoidance of doubt, neither the contents of this website nor any website accessible from hyperlinks is incorporated into or forms part of this Announcement.

No profit forecasts, estimates or quantified benefits statements

Save for the profit estimates set out in paragraph 8.1 of this Announcement, no statement in this Announcement is intended to constitute a profit forecast, profit estimate or quantified benefits statement for any period and no statement in this Announcement should be interpreted to mean that the earnings or future earnings per share of or dividends or future dividends per share of Gresham for the current or future financial years will necessarily match or exceed the historical published earnings or earnings per share or dividends per share of Gresham.

Requesting hard copy documents

In accordance with Rule 30.3 of the Takeover Code, Gresham Shareholders, persons with information rights and participants in the Gresham Share Plans may request a hard copy of this Announcement by contacting Gresham's registrars, Equiniti: (i) on +44 (0)371 384 2050. Calls are charged at the standard geographic rate and will vary by provider. Calls outside the United Kingdom will be charged at the applicable international rate. Lines are open between 08:30 - 17:30, Monday to Friday excluding public holidays in England and Wales; or (ii) by submitting a request in writing to Equiniti at Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA. Please note that Equiniti cannot provide any financial, legal or tax advice and calls may be recorded and monitored for security and training purposes. For persons who receive a copy of this Announcement in electronic form or via a website notification, a hard copy of this Announcement will not be sent unless so requested. Such persons may also request that all future documents, announcements and information to be sent to them in relation to the Acquisition should be in hard copy form.

Electronic communications

Please be aware that addresses, electronic addresses and certain other information provided by Gresham Shareholders, persons with information rights and other relevant persons for the receipt of communications from Gresham may be provided to Bidco during the Offer Period as required under Section 4 of Appendix 4 of the Takeover Code to comply with Rule 2.11(c) of the Takeover Code.

Rounding

Certain figures included in this Announcement have been subjected to rounding adjustments. Accordingly, figures shown for the same category presented in different tables may vary slightly and figures shown as totals in certain tables may not be an arithmetic aggregation of figures that precede them.

General

If the Acquisition is effected by way of an Offer, and such an Offer becomes or is declared unconditional in all respects and sufficient acceptances are received, Bidco intends to exercise its rights to apply the provisions of Chapter 3 of Part 28 of the Companies Act 2006 so as to acquire compulsorily the remaining Gresham Shares in respect of which the Offer has not been accepted.

Investors should be aware that Bidco may purchase Gresham Shares otherwise than under any Offer or the Scheme, including pursuant to privately negotiated purchases.

Rule 2.9 of the Takeover Code

For the purposes of Rule 2.9 of the Takeover Code, Gresham confirms that, as at 8 April 2024 (being the Last Practicable Date), it had 83,874,458 ordinary shares of 5 pence each ("Ordinary Shares") in issue and admitted to trading on the Main Market of the London Stock Exchange. Gresham does not hold any Ordinary Shares in treasury. The International Securities Identification Number (ISIN) for the Ordinary Shares is GB0008808825.

APPENDIX 1CONDITIONS TO AND CERTAIN FURTHER TERMS OF THE ACQUISITION

Part A: Conditions to the Scheme and the Acquisition

Long-Stop Date

Scheme approval

General Conditions

Regulatory approvals

United Kingdom

United States

Australia

Luxembourg

Certain matters arising as a result of any arrangement, agreement, etc.

Other Third Party clearances

Certain events occurring since 30 June 2023

No material adverse change, litigation, regulatory enquiry or similar

No discovery of certain matters regarding information, liabilities and environmental issues

Anti-corruption, sanctions, criminal property, IT

Part B: Certain further terms

APPENDIX 2SOURCES AND BASES OF INFORMATION

In this Announcement, unless otherwise stated or the context otherwise requires, the following sources have been used:

APPENDIX 3DETAILS OF IRREVOCABLE UNDERTAKINGS AND LETTERS OF INTENT

1. Gresham Directors

The Gresham Directors who are interested in Gresham Shares have given irrevocable undertakings to vote (or, where applicable, procure voting) in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by an Offer, to accept or procure acceptance of such Offer) in respect of their own beneficial holdings (and those of their connected persons) of Gresham Shares:

The irrevocable undertakings given by the above named Gresham Directors require them to vote in favour of the Scheme at the Court Meeting.

The irrevocable undertakings provided by each of the above named Gresham Directors shall cease to be binding on the earlier of the following occurrences: (i) if the Scheme Document or the Offer Document (as the case may be) has not been published within 28 days of the issue of this Announcement (or within such longer period as Bidco, with the consent of the Panel, determines), provided that if Bidco elects to exercise its right to implement the Acquisition by way of an Offer, the time period in this paragraph (i) shall be extended to refer to within 28 days of the issue of the press announcement announcing the change in structure (or such other date for the publication of the Offer Document as the Panel may require); or (ii) on the earlier of (I) the Long-Stop Date; or (II) the date on which the Acquisition (whether implemented by way of a Scheme or Offer) is withdrawn or lapses in accordance with its terms, or fails to be sanctioned by the Court and/or approved by a General Meeting in the case of a Scheme (unless the Acquisition is withdrawn or lapses solely as a result of Bidco exercising its right to implement the Acquisition by way of an Offer rather than by way of a Scheme) and no new, revised or replacement takeover offer or scheme of arrangement is or has been announced by Bidco, in accordance with Rule 2.7 of the Takeover Code, within 10 Business Days after any such lapse or renewal.

2. Gresham Shareholders (other than the Gresham Directors)

In addition to the above mentioned Gresham Directors, each of the following Gresham Shareholders has given an irrevocable undertaking to vote (or, where applicable, procure voting) in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by an Offer, to accept or procure acceptance of such Offer) in respect of the Gresham Shares in which it is interested.

The obligations contained in the irrevocable undertakings provided by each of the named Gresham Shareholders (other than Gresham Directors) above lapse and cease to have effect if: (i) the Acquisition has not completed by 5.00 p.m. on the Long-Stop Date; or (ii) the Acquisition (whether implemented by way of a Scheme or an Offer) lapses or is withdrawn in a manner which is permitted by the Panel, save where such lapse or withdrawal is as a result of Bidco exercising its right to implement the Acquisition by way of an Offer rather than by way of a Scheme or vice versa in accordance with the Takeover Code.

The Kestrel Irrevocable will also cease to be binding if any third party announces a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code for all of the issued and to be issued ordinary share capital of Gresham which puts a value on each Gresham Share of at least 188 pence, and by no later than 5:00pm on the fifth business day after the date on which such an offer is made, the consideration per Gresham Share offered by Bidco is not increased by Bidco such that Bidco's offer is of a value equal to or exceeding such higher competing offer made by the relevant third party.

The Herald Irrevocable will also cease to be binding if any third party announces a firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code for all of the issued and to be issued ordinary share capital of Gresham which puts a value on each Gresham Share of at least 188 pence, and by no later than 5:00pm on the fifth business day after the date on which such an offer is made, the consideration per Gresham Share offered by Bidco is not increased by Bidco such that Bidco's offer is of a value equal to or exceeding 10% above such higher competing offer made by the relevant third party.

3. Letters of Intent

Schroder Investment Management Limited, Amati Global Investors Limited and J O Hambro Capital Management Limited have each given a non-binding, revocable letter of intent to vote (or, where applicable, procure voting) in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by an Offer, to accept or procure acceptance of such Offer) in respect of, in aggregate, 13,325,000 Gresham Shares, representing approximately 15.89 per cent. of the existing issued ordinary share capital of Gresham and 15.89 per cent. of the Scheme Shares eligible to vote at the Court Meeting, in each case, as at the Last Practicable Date.

Further, Schroder Investment Management Limited and J O Hambro Capital Management Limited have indicated in their respective letters that they will vote (or, where applicable, procure voting) in favour of the Scheme at the Court Meeting and the Special Resolution to be proposed at the General Meeting (or in the event that the Acquisition is implemented by an Offer, to accept or procure acceptance of such Offer) in respect of their respective Gresham Shares, even if a third party other than Bidco or a subsidiary of Bidco or any person acting in concert with Bidco announces its firm intention to make an offer in accordance with Rule 2.7 of the Takeover Code to acquire all of the issued and to be issued ordinary share capital of Gresham which puts a value on each Gresham Share of less than 180 pence (in respect of Schroder Investment Management Limited) or less than 188 pence (in respect of J O Hambro Capital Management Limited).

APPENDIX 4DEFINITIONS

For the purposes of this Announcement:

· "subsidiary", "subsidiary undertaking" and "undertaking" have the respective meanings given by the Companies Act 2006 and "associated undertaking" has the meaning given by paragraph 19 of Schedule 6 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (other than paragraph 19(1)(b) of Schedule 6 to those Regulations which shall be excluded for this purpose);

· all references to a statutory provision or law or to any order or regulation shall be construed as a reference to that provision, law, order or regulation as extended, modified, replaced or re-enacted from time to time and all statutory instruments, regulations and orders from time to time made thereunder or validly deriving therefrom;

· all references to time are to London time unless otherwise stated;

· all references to "£" and "pence" are to the lawful currency of the United Kingdom; and

· references to the singular include the plural and vice versa.