Ideagen agrees to £1.09bn takeover offer from London private equity firm
UK software company Ideagen has agreed to a £1.09bn all-cash takeover offer from London-based private equity firm Hg.
Ideagen shareholders are set to receive 350p per share, representing a premium of 52 per cent compared to the company’s closing share price of 230p on 11 April 2022.
Shares have jumped 46 per cent today on the back of the offer, a possible signal that investors are expecting a counter bid from French suitor Astorg. Ideagen remains in discussions with Astorg, but confirmed earlier today that it has received no firm offer.
“We believe that the offer from Bidco represents value for shareholders and the Ideagen Directors unanimously intend to recommend the offer to shareholders,” said Ideagen chairman Richard Longdon, referencing suitor Rainforest Bidco, which is controlled by funds managed by Hg.
Ideagen, which helps companies comply with regulation and manage risk, includes blue chip brands in its customer base such as Heineken, British Airways and the Bank of New York.
A slew of firms have signalled their interest in snapping up Ideagen since early April, with private equity firms Cinven and Astorg both attempting to court the software company. However, Cinven dropped out of the race last week, leaving UK investor Hg free to make a play for ownership.
Partners at Hg said the deal, which is expected to complete in July, represents good value for shareholders.
“Our experience in the sector gives us strong conviction that Ideagen represents a high-quality platform, and we are committed to providing additional capital and resources that are required to further support and enhance Ideagen’s next phase of growth,” said Christopher Fielding, Joris Van Gool and Jean-Baptiste Brian.
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