The board of Eckoh PLC (AIM:ECK, OTC:EKTPF) has agreed to a takeover by private equity suitor Bridgepoint for a total value of £169.3 million.
The AIM-listed payment solutions provider, which has been looking for a deal since last year, has been mulling the offer since August.
On Wednesday, it said an all-cash deal had been agreed at the previously mooted price of 54p per share.
This is an 11% premium to the closing price before the deal was announced or a 35% premium above the six-month average.
Chris Humphrey, Eckoh's chairman, noted that late last year the board began to consider alternative options to realise value for shareholders, based on the belief “that the share price did not reflect the fundamental value of the business”.
The "exhaustive and comprehensive" process involved a large number of both corporate and private equity investors, culminating in the proposal from Bridgepoint.
"The Eckoh independent directors are recommending Bridgepoint's proposal based on its compelling value proposition for Eckoh's shareholders and the benefits that Bridgepoint's investment in the company is expected to bring to stakeholders in the company."