Local government contractor Civica has agreed a management buy-out, backed by funds from equity group 3i.
The cash offer of 270p per share values the software group at £190million. The group supplies the software to almost 90% of councils in the UK.
3i investors have created a new company Cornwall Bidco, specifically for making the offer, and will supply a management team to run the business and executives who will own a minority shareholding.
Civica’s non executive chairman has backed the offer, saying “We believe this offer represents an attractive premium and provides certainty of value for our shareholders.”
Head of technology at 3i, Simon Freer said “Technology is a key sector focus for 3i and we are delighted to be in a position to invest in Civica.”
‘We are looking forward to working with the management team, lead by Simon Downing, to help the business achieve its full potential,’ he added.
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