20th Apr 2018 15:24
LONDON (Alliance News) - Fidessa Group PLC has agreed to terms of all an cash offer made Friday morning by ION Capital UK Ltd.
ION confirmed it had made GBP38.703 proposal in cash for trading and investment management system firm Fidessa's 40.1 million shares, an offer that is lower than Fidessa's current market price.
The proposed share price values Fidessa at about GBP1.50 billion with shareholders entitled to a final dividend and special dividend for 2017 totalling 79.70 pence each.
German software firm Temenos' made an offer in February worth 3,567.00p per share in cash, valuing Fidessa at around GBP1.4 billion. Fidessa shareholders were to meet next Friday to vote on the Temenos offer but that has now been adjourned.
ION believes that their offer provides Fidessa shareholders with a "compelling alternative" to the Temenos offer as it is an increase of £3.03 per Fidessa share.
The price of GBP38.703 in cash offered for each Fidessa share represents a 8.5% increase in the Temenos offer. A 49% increase to the closing price of GBP26.05 per Fidessa share on before the announcement of the Temenos offer.
It is a 57% jump on Fidessa's three month volume weighted average share price of GBP24.66 per share. It is also a 65% increase of Fidessa's six month volume weighted average share price of GBP23.43 per share.
John Hamer, Chairman of Fidessa said: "The board of Fidessa is pleased to recommend ION's cash offer for Fidessa which is at an 8.5% premium to the Temenos proposal and provides our shareholders with even greater value in cash for their shares. ION shares our vision of driving workflow automation in the world's financial markets and has a highly complementary business to ours: Fidessa is a leader in Equities and Derivatives and ION is a leader in Fixed Income and FX. The combination of the businesses has a compelling strategic rationale and will support a well-diversified mix of asset classes, geographies and products."
Shares in Fidessa were up 1.3% at 4,050.00 pence Friday afternoon.
Related Shares:
Fidessa Group