International group swoops for Sheffield IT supplier
Electronic Data Processing, the Sheffield-based wholesale distribution IT supplier, is set to be acquired by a global group.
Eagle Bidco, a newly incorporated company owned by Kerridge Commercial Systems Group (KCS) which employs over 650 staff at offices in the UK, Ireland, the Netherlands, South Africa and North America, serving over 10,000 customers, has agreed terms on a recommended cash offer for the business.
EDP Shareholders will be entitled to receive 91p in cash for each share, an offer price which values the entire issued and to be issued ordinary share capital of EDP at around £11.85m.
KCS provides specialist software, services and support to deliver fully integrated trading and business management solutions to trade, wholesale, manufacturing, field service and distribution customers, of all sizes, internationally.
For the last financial year to 30 September 2017, KCSG had revenue of £57.1m, generating EBITDA of £13.6m.
Net assets were £71mn at 30 September 2017. KCSG has grown rapidly both organically and through the acquisition of a number of businesses to extend its geographical reach, add product capability and extend into adjacent software verticals.
As part of its strategy to become a global leader in its market, KCSG has partnered with private equity firm Accel-KKR Company.
EDP is a niche supplier of computer software solutions in the UK and internationally, and provides ERP solutions for the merchanting and wholesale distribution industry, as well as e-business, application hosting, and sales intelligence solutions.
Bidco says it is confident that EDP is well positioned to add “significant value” to the enlarged group to serve as a catalyst for future growth in an acquisition which brings further scale, particularly in the UK market.
Ian Bendelow, chief executive of KCSG, said: “The acquisition of EDP is a great opportunity to accelerate our strategy. It brings us greater presence in the UK and an increased platform for growth in our traditional markets. EDP is a high quality business with customer offerings that are highly complementary to the KCS Group and we very much look forward to welcoming its employees into the enlarged group.”
Sir Michael Heller, non-executive chairman of EDP, said: “The EDP and KCSG businesses have been good competitors for many years, addressing the needs of customers in the same vertical markets. Accordingly the EDP Directors believe that the KCS Group’s activities provide a strong fit with those of EDP and that the KCS Group is an appropriate partner to continue the development of the EDP business.
“The additional resources that the KCS Group will bring will mean that it is well positioned and resourced to support EDP and the future growth of the EDP business. Whilst the EDP directors continue to believe in the prospects for the business and the attractiveness of its product offering, it is the EDP directors’ belief that the acquisition represents an acceptable and certain valuation to EDP shareholders.”
