The share price of the UK-based Sopheon Corporation (GB:SPE) soared yesterday after the U.S. private equity firm Wellspring showed takeover interest in the company. The company received a takeover offer of £115 million from Iops Buyer Inc., a subsidiary of Wellspring Worldwide Inc. The acquisition proposal stands at £10.00 per share in cash, significantly higher than the closing share price of £4.90, more than doubling its value.
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The stock gained around 90% on Tuesday, reaching its highest point last year. Year-to-date, the share price has experienced a gain of over 50%.
Sopheon is a software company that provides a range of enterprise solutions designed to assist customers in achieving enhanced growth and profitability. The company currently caters to around 250 customers across 50 countries worldwide.
The Deal Rationale
Sopheon reported that discussions regarding the potential acquisition are in an advanced stage, and the company’s board is prepared to provide a unanimous recommendation in favor of the takeover. The successful completion of the acquisition would be contingent on regulatory approval, and Sopheon anticipates that this clearance will be obtained by or before mid-December.
Wellspring works with around 500 companies globally, specializing in web-based software systems. Both companies perfectly complement each other in terms of their product offerings. Additionally, they share similarities with their clients, with Sopheon primarily concentrating on serving large corporate clients.
Sopheon’s board strongly believes in the company’s ability to thrive as an independent entity in the medium to long term. The board expresses satisfaction with the significant progress achieved in recent years regarding its strategic objectives.
