Ideagen shares soared 46% to 355p after the group announced that it has agreed to a £1.06bn takeover offer by Rainforest Bidco, which is a company indirectly controlled by funds managed by Hg Pooled Management.
HG Pooled will pay 350p per share for Ideagen, representing a 44% premium over the company’s closing price of 243p on Friday last week and valuing its issued and to be issued share capital at £1.06bn.
The transaction is contingent on receiving at least 75% shareholder approval at both the general and court meetings on June 22, as well as clearance from the High Court of Justice in England and Wales.
The deal is expected to be completed by July, according to Ideagen. Hg Pooled has received irrevocable acceptances from about 3.5m Ideagen shares, or 1.2% of the company’s issued share capital, so far.
Ideagen said it unanimously supports Hg Pooled’s bid, but it is still in talks with private equity company Astorg, which has been granted due diligence access.
Last Thursday, Ideagen acknowledged that Hg Pooled and Astorg had expressed interest in a buyout attempt, but that no firm offer had been made.
Private equity firm , Cinven said in mid-April that it was considering a bid, but withdrew in early May.
Richard Longdon, Non-Executive Chairman of Ideagen, said, “The all-cash offer represents a compelling and attractive opportunity for shareholders to realise and crystallise their investment in Ideagen in the near term and also provides a significant premium to the prevailing share price notwithstanding the backdrop of the wider risks posed by the political and macro-economic environment.”
“The offer reflects the quality, strength and long-term performance of Ideagen’s businesses and its future growth potential. We believe that Hg’s track-record and expertise in supporting and growing software businesses would provide a complementary partner for Ideagen’s stakeholders.”