LONDON – Bridgepoint Advisers II Limited’s subsidiary, Eagle UK Bidco Limited (“Bidco”), has agreed to acquire Eckoh plc, a secure payment and customer engagement software provider, for an estimated £169.3 million. The acquisition, which will be executed via a Scheme of Arrangement, offers 54 pence in cash per Eckoh share, representing a significant premium over recent closing prices.
The offer price reflects an 11.34% premium to Eckoh’s closing share price on August 21, 2024, and a 34.98% premium to the six-month volume-weighted average price leading up to that date. The transaction values Eckoh’s issued and to be issued share capital on a fully diluted basis and implies an enterprise value of approximately £161.8 million, equating to a multiple of 15.9x Eckoh’s adjusted EBITDA for the year ended March 31, 2024.
Eckoh’s board views the acquisition as an attractive premium, offering full value for the business compared to recent M&A transactions involving UK-listed technology peers. The acquisition by Bridgepoint, a global private asset growth investor, is expected to close in Q1 2025, subject to shareholder approval and court sanctioning.
Bridgepoint has outlined plans to further Eckoh’s growth through geographic expansion, product innovation, and targeted acquisitions, leveraging the company’s strong position in a niche market with growing demand for secure data protection in customer interactions.
Eckoh’s management team, led by CEO Nik Philpot and CFO Chrissie Herbert, supports the acquisition, seeing it as an opportunity to accelerate investment strategies and achieve long-term growth with greater flexibility under private ownership. The management team has entered into rollover arrangements with Bidco, under which they will reinvest a portion of their shares into the acquiring entity.
The acquisition has received unanimous support from Eckoh’s independent directors, who recommend that shareholders vote in favor of the scheme. Major shareholders have also signaled support through irrevocable undertakings and a letter of intent.
Eckoh, with a history of over 20 years in contact center technology, specializes in solutions that protect sensitive customer data across various communication channels. The company serves over 200 enterprise clients globally and holds multiple patents for its data security solutions. For the financial year ended March 31, 2024, Eckoh reported revenues of £37.2 million and adjusted EBITDA of £10.2 million.
This news is based on a press release statement.
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