Shares in Micro Focus bounce 90% on information of £5bn Canadian takeover deal
One in every of final UK tech companies listed in London heading in the right direction to be snapped up by Nasdaq-listed OpenText
One of many few remaining British know-how companies listed in London is to move into overseas possession after a Canadian software program supplier on Thursday night time introduced a £5bn deal.
Shares in IT agency Micro Focus surged greater than 90% on Friday after it revealed it was set to be snapped up by OpenText in a deal anticipated to be accomplished within the first quarter of 2023.
OpenText, which is likely one of the world’s largest software program companies and is listed on the US Nasdaq, has supplied 532p per share for Micro Focus, marking a 98% premium Wednesday’s share value.
OpenText’s boss, Mark Barrenechea, mentioned the deal – the newest wherein a UK agency has been purchased by abroad pursuits in recent times – would create “one of many world’s largest software program and cloud companies with an amazing marquee buyer base, international scale and complete go-to-market”.
The information almost doubled the worth of Micro Focus’s FTSE 250-listed shares, which had been buying and selling at about 512p on Friday morning.
It helped reverse a stoop in Micro Focus shares, which have tumbled within the wake of its £6.3bn takeover of Hewlett Packard Enterprise’s software program division in 2017. Micro Focus struggled to combine the enterprise, which was larger than itself and was the biggest acquisition in its historical past. Income subsequently declined, with the corporate pressured to problem a string of revenue warnings within the years that adopted.
Micro Focus’s chairman Greg Lock mentioned the takeover supply from OpenText “demonstrates the numerous progress we’ve made reworking the enterprise. OpenText not solely shares our values however will supply new alternatives for each our clients and workers.”
The deal is the newest wherein a UK agency has been taken over by abroad pursuits in recent times, with main manufacturers together with grocery store Morrisons, safety firm G4S, and infrastructure group John Laing now owned by US companies.
Cybersecurity agency Darktrace final week confirmed it was within the early stage of takeover talks with the US personal fairness firm Thoma Bravo, although no agency supply has been made.
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Days later it emerged that French conglomerate Schneider Electrical was contemplating a takeover of British software program developer Aveva, a transfer that may contain shopping for the 40% of the agency it doesn’t already personal.