Bridgepoint to Acquire Eckoh for £169.3 Million
Bridgepoint Advisers II Limited's subsidiary, Eagle UK Bidco Limited, is set to acquire Eckoh plc, a prominent provider of secure payment and customer engagement software, for an estimated £169.3 million. This significant purchase will be completed through a Scheme of Arrangement, which proposes an attractive offer of 54 pence in cash for each Eckoh share, demonstrating a considerable premium over its recent closing prices.
Details of the Acquisition Offer
The proposed offer reflects an 11.34% premium to Eckoh's closing share price on a recent trading day, along with an impressive 34.98% premium over the six-month volume-weighted average price leading up to this announcement. Notably, the transaction values Eckoh's total issued and to-be-issued share capital on a fully diluted basis, indicating an enterprise value of approximately £161.8 million. This represents a significant multiple of 15.9 times Eckoh's adjusted EBITDA for the fiscal year ended March 31, 2024.
Eckoh's Board and Management Support
Eckoh's board views this acquisition favorably, perceiving it as providing full value for the company in comparison to other recent mergers and acquisitions within the UK technology sector. The planned transaction by Bridgepoint, recognized as a global leader in private asset growth investment, is expected to conclude in the first quarter of 2025, pending necessary shareholder approval and court sanctions.
Strategic Growth Plans
Bridgepoint has articulated a vision for Eckoh's continued growth that aligns with the rising need for secure data protection in customer interactions. This strategy encompasses geographic expansion, innovative product development, and targeted acquisitions, which will enhance Eckoh's already strong foothold in a specialized market.
Management Team Cooperation
The acquisition has garnered the full endorsement of Eckoh's management team, including CEO Nik Philpot and CFO Chrissie Herbert, who view this opportunity as a pathway to accelerate their investment strategies and foster long-term growth. Their commitment extends to rollover arrangements with Bidco, allowing the management to reinvest a portion of their shares into the acquiring entity.
Unanimous Support from Directors and Shareholders
The independent directors of Eckoh have unanimously recommended that shareholders vote in favor of the acquisition scheme. Support from major shareholders is reinforced through irrevocable commitments and a letter of intent, which signals a collective endorsement of this strategic move.
Eckoh's Proven Track Record
With over 20 years of experience in contact center technology, Eckoh specializes in innovative solutions designed to safeguard sensitive customer data across multiple communication channels. The company proudly serves over 200 enterprise clients on a global scale and holds numerous patents protecting its data security innovations. For the financial year concluded on March 31, 2024, Eckoh reported revenues of £37.2 million and an adjusted EBITDA of £10.2 million, underscoring its solid market position.
Frequently Asked Questions
What is the value of the acquisition?
The acquisition of Eckoh by Bridgepoint is valued at approximately £169.3 million.
What is the expected closing date for the acquisition?
The transaction is anticipated to close in the first quarter of 2025, pending shareholder approval and court processes.
What premium does the offer represent?
The offer represents an 11.34% premium to Eckoh's recent closing share price, alongside a 34.98% premium based on the six-month volume-weighted average price.
How many enterprise clients does Eckoh serve?
Eckoh currently serves over 200 enterprise clients across the globe.
Who are the key management members supporting the acquisition?
The acquisition is supported by Eckoh's CEO Nik Philpot and CFO Chrissie Herbert, who are optimistic about the future prospects under private ownership.
