3rd Jul 2018 12:38
LONDON (Alliance News) - Eagle Bidco Ltd said Tuesday it has agreed terms on an cash offer to acquire Electronic Data Processing PLC, which values the sales and planning software provider at GBP11.9 million.
Shares in the software solutions company rose 28% at 87.00 pence on Tuesday.
Under the offer, Electronic Data Processing shareholders would receive 91 pence in cash for each share held. The offer price is a 34% premium to the closing share price of 68 pence on Monday. The stock was up 28% at 87.10 pence on Tuesday.
Eagle Bidco is a company owned and controlled by Kerridge Commercial Systems Group Ltd.
Eagle Bidco said Electronic Data Processing's directors intend to recommend the offer be accepted and believe the offer is in the best interest of the company and its shareholders.
Kerridge already has the support of shareholders owning 46.6% of Electronic Data Processing.
"The EDP and KCSG businesses have been good competitors for many years, addressing the needs of customers in the same vertical markets. Accordingly the EDP Directors believe that the KCS Group's activities provide a strong fit with those of EDP and that the KCS Group is an appropriate partner to continue the development of the EDP business. The additional resources that the KCS Group will bring will mean that it is well positioned and resourced to support EDP and the future growth of the EDP business," said Electronic Data Processing Chairman Michael Heller.