British tech star Blue Prism is a step closer to a £1.24billion takeover by a US rival.
The board has thrown its weight behind an offer from SS&C after a rival bidder, Vista, pulled out of the race.
The SS&C deal, which is priced at 1,275p per share, will hand four of Blue Prism’s co-founders and bosses £169million.
Payday: Blue Prism chief executive and chairman Jason Kingdon (pictured) is in line for £75m if the sale to SS&C goes through
But the buyout still faces major hurdles. The Mail understands the Government is monitoring the deal and it will probably be looked into by the Business Department once the National Security and Investment Act comes into force next month.
The act is aimed at preventing takeovers in strategic industries where loss could compromise national security, and to secure greater protections for firms that are sold.
Blue Prism, one of the 20 biggest firms on AIM, would fall under this banner because of its expertise in artificial intelligence. An investigation could delay a deal by months.
The firm provides automation technology to businesses, selling virtual robots to do mundane tasks such as fulfilling customer orders.
Clients include HSBC, the NHS, Ebay and Barclays. Blue Prism pioneered the entire field of robotic process automation in the 2000s, and is still the biggest player in the UK. But the Warrington firm has faced stiff competition from the US.
Its shareholders will need to vote on the deal after the board backed SS&C, with a meeting likely to be within the next few weeks.
A bidding war has been playing out since September, when Vista agreed a £1.1billion deal.
SS&C went higher, triggering a second Vista bid but last week SS&C won out with a 1,275p per share deal valuing it at £1.24billion.
That hands millions to top managers: chief executive Jason Kingdon is in line for £75million, while co-founder Alastair Bathgate will make £59million.
Fellow co-founder and chief technology officer David Moss will net over £18million and Terry Walby, head of Blue Prism Ventures, £17million.
James Rasteh, partner at a major investor, Coast Capital, said: ‘For us, it’s not just about the price, but about a better home for the many talented folks at Blue Prism.’ Shares fell 4 per cent, or 53p, to 1260p.
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