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Siris bids to acquire Equiniti for £600 million

Siris bids to acquire Equiniti for £600 million

US private equity firm Siris Capital has made a 170 pence per share bid for Equiniti, which vlaues the British-based financial process outsourcing business at £600 million.

The takeover approach barely gives Equiniti's new chief executive Paul Lynam a chance to got his seat warm, drafted in on 1 April to help the business recover from a disappointing FY20, which saw group revenue declining by 15% and Ebidta down 32.6% to £91.7 million from £136 million the year previously.

The company has painted a picture of a challenging business environment, leading to a slower recovery in corporate actions, lower dealing and dividend related revenues, fewer software sales and lower demand for remediation services.

Siris' 170 pence per share offer is at a 24% premium to Equiniti's 137.5p a share closing price on Friday.

In a bland statement to the stock exchange, Equniti confirms the bid approach, noting: The Board of EQ will evaluate the proposal carefully in all respects, together with its financial and legal advisers.

"In the meantime, shareholders are strongly advised to take no action in relation to the proposal."

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