The board of Alpha Financial Markets Consulting PLC (AIM:AFM) has formally backed a £626 million takeover by private equity group Bridgepoint.
Investors will receive 505p a share in cash - a near 51% premium over the price before the bid approach was made public. The transaction is expected to complete in the third quarter subject to the usual shareholder vote.
Ken Fry, chairman of the fund management consultancy business, said the offer "recognises the quality and value of the business and represents an opportunity for Alpha FMC shareholders to realise their entire investment".
He added: "Bridgepoint is a highly successful investor, with a proven track record in supporting specialist consulting businesses and high-quality management teams.
"Alpha FMC will benefit from their expertise and support with the next phase of its development and growth, providing both access to capital and continuity for both Alpha FMC's clients and employees."