A London-listed tech firm could become the latest UK company to fall into the hands of a private equity predator as it weighs a £1billion takeover.
Buyout firm Cinven is mulling a bid for software company Ideagen, which sells software to help businesses and governments comply with regulations. Its clients include Heineken, British Airways and the Bank of New York.
Ideagen was set up in 2008 and then floated on Aim in 2014. Its stock closed last week at £2.53, valuing it at £743 million. But City sources said the average analyst valuation of the stock was £3.40, putting its price tag above £1billion.
Predator: Buyout firm Cinven is mulling a bid for software company Ideagen, which sells software to help businesses and governments comply with regulations
Cinven is one of Britain’s largest private equity firms and its UK assets including testing business LGC, which has worked for the Government and police service.
Its interest in Ideagen comes amid a wave of bids for British firms listed on the stock market from secretive buy-out firms that fund their bids with large debt piles.
Many London-listed firms have caught the attention of the buy-out barons after their share prices collapsed following the stockmarket crash in March and April 2020. Last year, supermarket giant Morrisons and motoring firm The AA were bought by private equity firms.
Cinven said it ‘is in the early stages of considering a possible offer for the company. No approach has been made to the Ideagen board of directors. There can be no certainty any offer will be made, nor as to the terms of any offer’.
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