LONDON-LISTED software firm Gresham Technologies has been bought out for just under £150m by an American private equity firm.

Gresham will be purchased by Alliance Bidco, a company owned indirectly by funds managed by STG Partners, a US PE firm. It will combine Gresham with another of its portfolio firms, Alveo.

Gresham's board said that the "low level of liquidity" on the London Stock Exchange was one of the deciding factors for giving up its public listing - a now-regular refrain from small and midcap listed firms.

Each shareholder will be entitled to receive 163 pence in cash as part of the offer.

Gresham and Alliance told markets that the acquisition values the public firm at around £146.7m and would be subject to Gresham's shareholders.

It added that Gresham's directors considered the offer "fair and reasonable" and that they "intend unanimously to recommend" shareholders back it as a court meeting for shareholders.

In the update to markets, Bidco said the deal "represents a compelling opportunity to acquire an attractive and well-established business providing posttrade processing solutions to capital markets participants."

Back in November, shares the company tanked after it told markets it was discontinuing its low-margin legacy service, costing it £8.5m.

Commenting on the Acquisition, Richard Last, chairman of Gresham, said: "We believe the cash offer provides a good opportunity for Gresham shareholders to realise fair and certain value and an exciting way for Gresham to compete more effectively in its global markets and to continue the Clareti journey started over a decade ago."

Shares closed up 24.42 per cent.

(c) 2024 City A.M., source Newspaper