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Confluence to acquire StatPro
Posted on Friday, 20 September 2019 11:03
Confluence Technologies, via Ceres Bidco, has agreed to acquire UK-based online asset valuation services and portfolio analysis software provider StatPro Group in a deal worth GBP 161.10 million.
The take-private transaction involves the US-based buyer offering GBP 2.30 per item of stock held in cash, representing a 54.9 per cent premium to the target’s close of GBP 1.49 on 19th September 2019, the last trading day prior to the announcement.
Both boards believe there are strong strategic reasons for combining the two groups with their complementary geographic reach and products and the tie up will delivery benefits to customers and other stakeholders.
Completion is expected in the fourth quarter of 2019 and is subject to the usual raft of conditions.
Rory Curran, non-executive chairman of StatPro, said: “Confluence is an excellent and complementary partner both in terms of geographical disposition and product capabilities. The combined entity will offer asset managers and fund administrators a more comprehensive range of support services and analytics on one platform.”
Confluence chief executive Mark Evans noted: “With a deeply complementary product set, and a diverse geographic footprint, the combined companies have an opportunity to both better serve our clients and continue both organisations' history of creating truly innovative, transformative products that our industry has come to value.”
Shares in StatPro jumped 52.4 per cent to GBP 2.26 at 10:32 today, giving the group a market capitalisation of GBP 149.06 million.
The business recorded revenue of GBP 28.25 million in the six months ended 30th June 2019, up 3.7 per cent from GBP 27.24 million in the corresponding period of 2018.
Adjusted earnings before interest, taxes, depreciation and amortisation rose 9.7 per cent to GBP 5.68 million in H1 2019 (H1 2018: GBP 5.18 million).
StatPro has over 500 clients in 38 countries providing software services to the asset management industry across 12 offices globally.
Confluence provides back-office automation systems to investment managers.
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