Blue Prism Group PLC, the robotic process automation software specialist, has recommended a 1.09bn takeover offer from the US private equity group Vista Funds.
The AIM-listed company announced on 31 August that it was holding talks with TPG Capital and Vista regarding possible offers. Blue Prism’s board decided to explore strategic options, including a sale, following a shareholder consultation earlier this year.
The 1,125p per share cash offer is at a premium of 35.2% to the closing price per Blue Prism share of 832 pence on 27 August, the last day of trading prior to the offer.
In a statement, Blue Prism said Vista intends to transfer the company to TIBCO, a portfolio company of Vista, which provides integration, data management and analytics software. TIBCO’s blue-chip enterprise customer base of over 10,000 companies includes approximately 50% of the Global 500.
The statement said the combination of Blue Prism and TIBCO technology is expected to yield “significant synergies and market differentiation” and in addition, Blue Prism is expected to benefit from access to TIBCO’s large global blue-chip enterprise customers and to greater access to long-term capital under private ownership.
As of yesterday, Blue Prism’s shareholders holding 23% of the company’s shares have given undertakings to accept the offer.
Commenting on the deal, Blue Prism chairman and chief executive Jason Kingdon said: “Combining with Vista and TIBCO will ensure we remain at the forefront of the next generation of intelligent automation: we can expand the range of products we offer our customers, with TIBCO’s global footprint and technologies; and, as a privately owned company, we will also have greater access to capital to pursue new growth opportunities via product investment and other potential M&A.”
Monti Saroya, senior managing director at Vista and co-head of the Vista Flagship Fund, said: “Vista is a leading investor in Robotic Process Automation technologies and views the acquisition of Blue Prism and combination with TIBCO as an exciting and transformational moment for the growth of enterprise-grade Intelligent Automation and Robotic Process Automation.
“We are pleased to extend this offer for Blue Prism and believe the combination will yield significant synergies and market differentiation, combining the product and R&D investment of the two businesses and enabling the marketing of a broader product offering to existing and new customers.”
Blue Prism shares were down 2.78% at 1,156p midmorning.