Scandinavian IT services firm TietoEnator has made a 71 pence-a-share cash offer for UK software house AttentiV Systems.
The 71 pence per share offer values AttentiV at £46.6 million and is a 25.7% premium over the firm's closing share price of 56.5 pence yesterday. It comes barely a year after AttentiV's successful flotation and three months after the vendor surprised the City with an unexpected profits warning.
AttentiV, which was formerly known as Lynx Financial Systems, was floated on the Alternative Investment Market (AIM) in March 2004. The vendor placed over 60 million of its ordinary shares at 55 pence per share, raising £33.3m.
The firm reported a 25% increase in turnover in its first full year results, while pre-tax profit tripled to £3.2m compared to 2003. The company also paid its first dividend since the flotation in March of 66 pence per share, six months ahead of target.
However, the business suffered a major setback in January when Attentiv issued a profits warning based on a change in strategy at one of its major client sites. The knock-on effect to service revenues was expected to hit the vendor's second half results.
In today's statement, TietoEnator says it will integrate its current UK banking solutions operations with AttentiV's business. The Scandinavian firm says its existing UK business has several customers among the top-tier banks but does not currently have a significant local presence in the country.
Matti Lehti, President and CEO of TietoEnator, says: "The acquisition of AttentiV, a well-established company with a strategic customer base, means that TietoEnator is establishing an excellent platform for further growth in the UK financial services market."
Lehti says the AttentiV business will continue with the current management team and product portfolio.
Attentiv stock soared 24.70% on the news in morning trading to 68.78 pence.