The board of Gresham Technologies plc (LSE:GHT) has accepted a take-private offer from Silicon Valley-based private equity group STG Partners.
On the terms agreed, shareholders in the financial sector software provider will receive 163.75p per share in cash, including a 0.75p per share dividend that is planned before the deal is likely to complete.
This is a 27% premium to the closing price yesterday and 33% to the average over the past six months, but below highs near 180p seen in the last couple of years.
It values Gresham at £146.7 million on a fully diluted basis, or an enterprise value of roughly £141.9 million.
Gresham’s directors said they intend to unanimously recommend that shareholders vote in favour of the deal, which is intended to be completed as a scheme of arrangement, at a court meeting with a special resolution to be proposed at the general meeting.
Kestrel Partners, the group’s largest shareholder with a 24% stake and a representative on the board, has given an irrevocable undertaking to vote in favour. This, plus other such agreements, provides support from those owning over 45% of issued shares.
Gresham chairman Richard Last 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."
STG said it wants to combine Gresham with its Alveo business to “create a capital markets data management specialist that offers clients greater scale and a range of solutions to facilitate their business processes”.