Feeds

Sherwood accepts Sungard offer

Trading update

  • alert
  • submit to reddit

Sherwood International's board has accepted a 140p a share cash offer from Sungard Data Systems which values the UK insurance software company at £65.1m.

Sungard is to combine Sherwood with its own insurance system business. The US company derives more than half of its $2.3bn annual turnover from selling software to the finance sector, with the balance coming from disaster recovery services.

Sungard's takeover is almost a done deal - Sherwood directors and institutional shareholders owning 44.66 per cent have already given irrevocable undertakings to accept the offer which at first sight is not particularly generous for a software and services business.

As of 31 December, 2002 Sherwood had net assets of £34.1m and recorded a profit for that year of £4.6m on sales of £52.2m.

Yes, the offer price represents a premium of 41 per cent to the closing price of 99p on April 28, the day before Sherwood announced preliminary discussions concerning a possible offer and 10 per cent higher than close of play yesterday.

But it appears to take into account difficult trading conditions currently being experienced by Sherwood. In a trading update today, the company reported a number of deferments on licence renewals. It attributes the delays to uncertainty over its future, and not to lost business. This will have a big impact on revenues and and an even bigger impact on profits for the first half. Sherwood expects to recover lost ground in the second half of the year. ®

Related story

Sherwood mulls Sungard offer

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.