Idox share price up 17.59% during pre-lunchtime trade

Dye and Durham, the legal technology company, confirmed on Friday that it has approached Idox to discuss a potential acquisition. 

Dye and Durham, listed on the Toronto Stock Exchange, submitted three non-binding indicative proposals of 67p, 70p and 75p per Idox share. These would be paid in cash on 9 February, 17 February and 18 February 2021 respectively. 

The proposal, on a fully diluted basis, puts Idox’s equity value at £342.8m. 

The Idox share price is up by 17.59% to 72.2p today as the company confirmed the approach by Dye and Durham. Year-to-date Idox’s share price is up by over 40% from 50.4p at the turn of the year.

Dye and Durham outlined the rationale behind the company’s approach in a statement:

“Dye & Durham’s vision is to be the world’s leading provider of public records registry data and the workflows this information powers,” the statement read. 

“Having an established platform in our key markets of Canada, the United Kingdom and Australia, Idox is a natural strategic vertical asset for Dye & Durham to own as the Company provides the specialist software solutions to over 90% of local government authorities in the United Kingdom, which supports the complex operations and management of public record information.”

“On a daily basis, Dye & Durham’s many customers across the United Kingdom access the public record information Idox’s software manages, allowing them to manage their information and regulatory requirements.”

Idox, the AIM-listed company, confirmed talks had taken place with Dye and Durham “in order to explore a basis for the agreement of a recommended cash offer”.