24th Dec 2024 09:32
(Alliance News) - Windward Ltd on Tuesday accepted a takeover offer worth GBP216 million from the fund group FTV VIII LP.
The Tel Aviv-based artificial intelligence company focused on the maritime sector has agreed to be acquired by Octopus UK Bidco Ltd, the London-based subsidiary of fund group FTV VIII LP, which is operated by San Francisco-based growth equity firm FTV Management Co LP.
FTV VIII's offer is for 215p per Windward share, worth around GBP216 million in total. This represents a 46% premium on Windward's closing share price of 147.65p on Monday.
Windward shares jumped 42% to GBP207.32 each after the deal's announcement on Tuesday morning in London.
FTV described the deal as an opportunity "to increase exposure to the growing maritime compliance and supply chain end market". The fund also said it will drive Windward's expansion from the maritime sector "into a broader supply chain analytics provider".
Expansion could lower short to medium-term profitability, given the need for investment, however the fund said it remained "confident in the future prospects of Windward's business".
Windward's independent directors have unanimously approved the deal, and will recommend shareholders vote in its favour at a general meeting that will take place no later than January 10.
FTV already has commitments from members of Windward's management team whose collective stake in Windward is around 15%. FTV also noted the approval of Windward shareholders owning around 48% of Windward's capital, bringing the total number of shares held by takeover supporters to around 55.5 million, or 63% of capital.
The deal is subject to shareholder approval, though FTV did not specify the required minimum percentage of votes in favour. Windward and FTV anticipate the deal closing by the end of first-quarter 2025.
"The Fund team have an outstanding track record in supporting the scaling of founder-led software businesses globally and we believe that together we will be a significantly stronger organisation," said Windward Chief Executive Officer Ami Daniel.
"For our customers, the additional investment will enable them to unlock far greater value from their data through our ambitious product roadmap, and for our employees, it provides increased job security and the confidence that we have the funding to drive forward together to achieve our potential."
FTV Principal Jerome Hershey commented on Windward: "The company's attractive subscription revenue model demonstrates strong operating leverage and margin expansion. We look forward to partnering with the team to help drive their ambitious vision for product and geographic expansion and an exciting set of organic and inorganic growth initiatives."
By Holly Munks, Alliance News reporter
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