Midlands’ patent and trade mark attorneys agree to employee trust offer in Birmingham advised deal
MIDLANDS-based patent attorneys Avidity IP Group has received an offer which will see its employee trust ending up owning around 60% for the benefit of Avidity’s employees.
Avidity IP is a firm of European Patent and Trade Mark attorneys with offices and specialist teams located in Birmingham, Stratford-upon-Avon, Cambridge and the Thames Valley.
Shareholders are being offered an initial 8.5p per Avidity share plus an earnout based on the performance of the company over the next three years. The independent chairman of Avidity, Sam Wauchope, has recommended the cash offer.
The Avidity Employee Ownership Trust is funding the initial consideration under the offer with facilities provided by Idea Catalyst, an existing shareholder of Avidity.
The offer from AEOTL while providing the two major shareholders of Avidity with an exit, also results in an employee-owned structure that is intended to recognise the important contribution of staff to its success and to provide a mechanism for them to share in that success.
AEOTL has received irrevocable undertakings to accept the offer in respect of 54.4% of the Avidity shares in issue.
AEOTL and ICL received financial advice on the transaction from Birmingham-based Cattaneo, whose team comprised Ian Stanway and Charles Cattaneo. Legal advice came from Andrew Smith, of Shakespeares Martineau.
Commenting on the transaction Sam Wauchope said: “The offer provides an opportunity for Avidity to create an employee-owned structure that will provide a mechanism that will help us to recruit, motivate and retain our people. We are keen to grow the business and believe we will be the first in our sector to adopt an employee owned business model.”
Ian Stanway, advising AEOTL and ICL said: “Because of the past history of Avidity and the requirements of existing shareholders the structuring and financing of the offer were quite complex. However, we are delighted to have been able to advise on the transaction which will see Avidity becoming an employee controlled business”.
