London-listed fintech Gresham Technologies has reached an agreement for a buyout by a private equity firm in a cash deal valued at £146.7 million.
Gresham’s board has endorsed the offer from Alliance Bidco, which is indirectly owned by the US private equity firm STG Partners. The proposed price of 163.75 pence per share represents a 27% premium over Monday’s closing price.
Gresham specializes in providing real-time data integrity and control solutions that assist financial institutions in mitigating risks. Bidco intends to merge Gresham with a firm it acquired last year, Alveo, with the goal of creating a global and distinctive enterprise data management and governance platform for the capital markets technology ecosystem.
The directors of Gresham are advocating for the offer due to the current challenging conditions in Gresham’s end markets, which are experiencing consolidation and slower customer transitions from legacy technologies to modern alternatives, potentially affecting sales. They also highlight the “low level of liquidity” on the London Stock Exchange, which complicates the ability for shareholders to cash in on their investments.
Richard Last, chairman of Gresham, commented, “We believe the cash offer provides a good opportunity for Gresham shareholders to realize fair and certain value, while also presenting an exciting avenue for Gresham to enhance its competitiveness in global markets and continue the Clareti journey that began over a decade ago.”