British software company IQGeo Group PLC (AIM:IQG) has recevied a £333 million cash offer from private equity firm KKR.
At 480p per share, the offer represents a 19% premium to Monday’s closing price and a 38% premium to the six-month trading average.
If approved by shareholders, KKR aims to accelerate IQGeo’s transition to a recurring software-centric business model, capitalise on the rapidly evolving geospatial software market and enhance operational foundations for future growth, particularly in telecoms and utility infrastructure.
IQGeo chair Paul Taylor said: “KKR's proposed offer underscores IQGeo's highly successful cloud-based software and services, and represents an attractive valuation and an opportunity for shareholders to receive certainty through cash consideration, not only for value created in recent years but also the future platform value of IQGeo.
“The proposed acquisition will provide IQGeo with the ownership structure and investment required to unlock its full potential."
Chief executive Richard Petti added: "We are committed to the success of our customers and our employees. Thanks to them, we have built a thriving business that delivers award-winning innovative software for the telecommunication and utility industries worldwide.
“The proposed acquisition is in direct response to this success, creating an opportunity for us to accelerate investment in our people, processes, and products and increase our ability to respond to market momentum.”
IQGeo hailed its first cash flow-positive year in 2023, with successful acquisitions and a loyal client base contributing to a 66% increase in total revenues to £44 million, with gross profit margins hitting 60%.
Shares ran up 16.5% following the announcement of the conditional takeover.