US tech business SS&C bids £1.24bn for Blue Prism, beating private equity firm Vista Partner’s £1.22bn bid
The board of London-listed takeover target Blue Prism today switched sides and backed a new last-minute bid from US tech firm SS&C.
Connecticut-headquartered SS&C today offered to buy AIM-listed tech company Blue Prism for £1.24 billion, trailing a £1.22 billion bid from a Texas private equity firm
Vista initially offered £1.1 billion at the end of September, but sweetened its offer after SS&C turned around Blue Prism. Earlier this month, SS&C said it was looking at bidding for Rs 1,200 per share for the company. Today’s offer is 1275p-a-share.
Blue Prism’s board initially supported Vista’s offer, but today switched allegiance to SS&C’s firm calling the bid a “better offer”. Investors were supposed to vote on Vista’s proposal next week, but that meeting has now been called off.
Shares of Blue Prism rose 18p, or 1.4%, to 1317p above the SS&C offer.
Vista has reserved the right to place counter bidding and analysts said the bidding war is likely to continue.
Phil Sheridan at Cantor Fitzgerald Europe said: “SS&C a modest premium, and Vista’s slightly complicated strategy should get them another bid, with the possibility of a takeover panel moving the auction process further down the line.”
A representative for Vista declined to comment.
Blue Prism, which makes automation software, was founded in Warrington in 2001 and listed on AIM in 2015. It works with companies including EY, Jaguar Land Rover, Siemens and Google. Last year, its software helped automate pandemic PPE ordering for the NHS.
SS&C makes software for hedge funds, private equity firms and healthcare companies. The Nasdaq-listed business has a market value of $20 billion.
Bill Stone, SS&C’s billionaire founder, chairman and CEO, said: “A core part of SS&C’s value proposition is increasing efficiencies for our customers, and Blue Prism is yet another way to achieve those efficiencies for our customers.” Liver.”
Jason Kingdon, CEO and Chairman of Blue Prism, said: “The opportunity to combine Blue Prism with SS&C gives us access to SS&C’s extensive 18,000 customers, as well as significant capital resources and investments in R&D. The combination ensures that we remain at the forefront of the next generation of intelligent automation and can continue to provide innovative products and services.”
Coast Capital, a New York investment firm with a small stake in Blue Prism, publicly criticized the company’s decision to sell Vista, saying the bid undervalued the company. Coast later said it supported SS&C’s offer, calling it “a visionary move.” Coast was contacted for comment.
Vista Partners just made it last week.