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Business & education services

HomeServe agrees to be taken over for £4.1bn by Brookfield Infrastructure Funds

The board has agreed a 1,200p-per-share cash deal.

HomeServe PLC has agreed to be taken over by Canadian investment giant Brookfield for almost £4.1bn.

The FTSE 250 group, which provides home repairs insurance, revealed in April that it was in talks with Brookfield Infrastructure after receiving a number of proposals, after the Toronto-based suitor first made its interest public on 24 March.

Today it was confirmed that the board has agreed a 1,200p-per-share cash deal.

The price represents a 71% premium to the closing price per share on 23 March and a 52% premium to the six-month average, but below share prices seen in 2020.

Homeserve spun out its leak-detection business LeakBot, now Ondo InsurTech, on 21 March.

The board of the UK company was advised by JP Morgan Cazenove, UBS and Goldman Sachs (NYSE:GS) that the terms of the deal are "fair and reasonable".

Tommy Breen, chairman of HomeServe, said: "HomeServe is a very high-quality business with a clear strategy and strong management team, which has been led entrepreneurially by its founder, Richard Harpin, for almost 30 years."

He said the offer "recognises the quality of our business, our people and our future growth potential, and allows shareholders to realise their investment at an attractive valuation".

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