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(Sharecast News) - Alpha Financial Markets Consultancy said on Thursday that it has agreed to be bought by private equity firm Bridgepoint for 505p per share in cash.
The acquisition price values the group at about £626m and represents a premium of approximately 50.7% to the closing share price on 30 April, which was the last business day before the start of the offer period.
Ken Fry, independent non-executive chairman of Alpha FMC, said: "Bridgepoint is a highly successful investor, with a proven track record in supporting specialist consulting businesses and high quality management teams. Alpha FMC will benefit from their expertise and support with the next phase of its development and growth, providing both access to capital and continuity for both Alpha FMC's clients and employees.
"Whilst Alpha FMC is well-positioned to make continued progress, the Alpha FMC independent directors believe that the acquisition recognises the quality and value of the business and represents an opportunity for Alpha FMC shareholders to realise their entire investment, in cash, at an attractive premium. Accordingly, the Alpha FMC independent directors intend to recommend unanimously the acquisition to Alpha FMC Shareholders."
News of the takeover came alongside Alpha FMC's results for the year to the end of March 2024, which showed that adjusted pre-tax profit fell 12.4% to £22.6m. Revenue rose 3% to £235.5m and net fee income ticked up 2.8% to £233.6m.
The company said that at constant currency, net fee growth was delivered by all geographic regions "in a challenging market".
Chief executive Luc Baqué said: "The group's trading this year has been resilient, despite a more competitive and challenging market environment and a longer sales cycle. While the supply and demand dynamics continue to rebalance, the current market still faces certain challenges.
"However, with our unique value proposition, unrivalled consulting team and robust long-term structural growth drivers, we remain well positioned for the future and focused on our ambition to double the business again by 2028."
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