Golden Gate opens up for Systems Union
Bid comes via Bidco
Systems Union shareholders attending its AGM today are considering a £220.5m takeover bid from a subsidiary of equity firm Golden Gate capital.
The financial software firm revealed that it had received an offer of 215p per share from Bidco, a vehicle setup to carry the move as “an indirect wholly owned subsidiary of Extensity”.
In case you’re wondering, Extensity is the new name for the financial software business of Geac, the Canadian financial software company taken over by Golden Gate Capital in a $1bn deal last month.
Systems Union said the deal would help it attain “critical mass” which would help it maintain its position in the mid-range financial software market, and extend its potential product range. The deal would create a group with revenues of $500m, and a product range spanning financial software, BI, and performance management.
Talk of a bid for Systems Union first cropped up last month, with shares of the firm jumping from 180p to 225p in a single morning. Shares were at 211.75p at time of writing. ®