30th Oct 2024 09:23
<p>(Alliance News) - Eckoh PLC on Wednesday said it agreed to a takeover from certain funds managed by Bridgepoint Advisers II. <br /><br />Eckoh, a London-based provider of secure payment and customer contact products, said the bid valued it at GBP169.3 million on a fully diluted basis and implies an enterprise value of approximately GBP161.8 million.<br /><br />The buyer will fork out 54p per share in cash, an 11% premium to Eckoh's 48.5p per share closing price on August 21, before the start of its offer period.<br /><br />Eckoh shares jumped 25% to 52.65 pence each on Wednesday morning in London, giving it a market capitalisation of GBP151.1 million.<br /><br />Eckoh expects the takeover to complete in the first quarter of 2025, with shares in the company to be delisted as it plans to re-register as a private company.<br /><br />"This offer represents a strong premium and allows Eckoh shareholders to realise attractive value," said Alan Payne, partner & deputy head of Bridgepoint Development Capital. "Eckoh is an international leader in a niche software sector and at the cutting edge of customer engagement technology, and we are real admirers of the platform. <br /><br />"There is a growing need for businesses to establish secure customer payment solutions as new contact channels, payment methods and compliance regulations emerge and customer requirements evolve."<br /><br />Eckoh said: "Bridgepoint believes that with the right additional investment, Eckoh will be well-placed to succeed. <br /><br />"Bridgepoint will help unlock Eckoh's potential through geographic expansion, product innovation and expansion and targeted acquisitions - enabling Eckoh to grow its customer base and drive long-term profitable growth."<br /><br />Oryx International Growth Fund Ltd, which invests in medium and small quoted and unquoted companies in the UK and US, and is managed by Harwood Capital Management, noted the release. Oryx expects an increase in its net asset value of the September valuation to rise by about 10 pence per share and increase its cash balance by GBP8.1 million, should the offer complete. <br /><br />Oryx shares were down 1.9% at 1,191.50p each on Wednesday morning in London.<br /><br />By Tom Budszus, Alliance News slot editor<br /><br />Comments and questions to [email protected]<br /><br />Copyright 2024 Alliance News Ltd. All Rights Reserved.</p> Read More