Shares jump as Blue Prism receives rival takeover bid from US investor
Shares in Blue Prism have jumped after another suiter showed interest in the business as investors got ready to vote on a £1.1bn offer already on the table.
The Warrington-based software company, whose clients include the NHS, Coca-Cola and Npower, had previously agreed to be acquired by American private equity firm Vista Equity Partners for 1,125p per share.
However, the firm has now received an approach from Connecticut-based SS&C Technologies worth 1,200p per share.
SS&C is the world’s largest hedge fund and private equity administrator, providing fund management and training services to the financial sector.
News of a potential bidding war saw share prices shoot up 8.9 per cent, or 100p, to 1220p.
In a market update Blue Prism said it is is currently evaluating the SS&C proposal with its financial adviser, Qatalyst Partners.
It said: “Whilst the directors of Blue Prism continue to believe that the Vista Offer is in the best interests of Blue Prism shareholders and are not withdrawing their recommendation of it at this stage, in light of the SS&C Proposal, the Board consider it to be in Blue Prism shareholders’ interests to adjourn the Court Meeting and General Meeting in order to explore further the approach from SS&C.”
The meeting to vote on the Vista Offer was due to be held this Friday, 19 November 2021, and will now be postponed.
Last month, Coast Capital, an activist investor with a stake in Blue Prism of just under 3pc, spoke out about the Vista offer accusing it of undervaluing the company.
James Rasteh, founding partner at Coast Capital Management, said they will support any bid from SS&C adding that if successful, it would “help transform SS&C into the clear tech leader (and therefore services leader) in the fund admin space.”
Blue Prism has pioneered “robotic process automation”, where software replaces workers to perform administrative tasks. It was founded by David Moss and Alastair Bathgate, both of whom remain major shareholders and who could earn £130m between them under the Vista deal.
