Mitie Group PLC (LSE:MTO) has agreed a recommended cash and share offer to acquire compliance services group Marlowe PLC (AIM:MRL) in a deal valuing the AIM-listed firm at approximately £366 million.
The transaction, to be carried out via a court-sanctioned scheme of arrangement, will see Marlowe shareholders receive 290p in cash and 1.1 new Mitie shares per Marlowe share, implying a value of 466p based on Mitie’s closing price of 160p on 4 June 2025.
It marks a 26.5% premium to Marlowe’s last share price before press speculation and a 41.7% premium to its six-month average.
The boards of both companies have unanimously recommended the deal.
Marlowe shareholders will collectively receive roughly 86.6 million new Mitie shares, representing around 6.4% of the enlarged group’s equity.
Mitie CEO Phil Bentley highlighted the emphasis of the deal is to add strength in its offering around Fire, Security and Water & Air Quality, areas where Marlowe excels.
"Marlowe stands out as a leader in Fire & Security and Water & Air and Asbestos compliance," Bentley said. "Adding Marlowe's c.3,000 highly respected colleagues to Mitie's capabilities and providing access to Mitie's clients will generate significant revenue growth opportunities as well as immediate cost efficiencies.
"We are excited about the next chapter in Mitie's history to become a leading Facilities Compliance provider."
In early deals, Marlowe shares gained 8% to trade at 438.65p, whilst Mitie was down 14p or 8.7% at 146p.
Mitie also today reported full year results with revenue up 13% to £5.09 billion, plus an operating profit of £162 million, free cash flow of £143 million, and a suspension of a £125 million share buyback.
It's move for Marlowe was rumoured earlier this week.