Bridgepoint to Acquire Eckoh for £169.3 Million
LONDON - Eagle UK Bidco Limited, a subsidiary of Bridgepoint Advisers II Limited, has agreed to acquire secure payment and customer engagement software provider Eckoh plc for an estimated £169.3 million. The acquisition, to be carried out through a Scheme of Arrangement, offers 54 pence in cash per Eckoh share, representing a substantial premium over recent closing prices.
The offer price reflects a premium of 11.34% to Eckoh's closing share price on August 21, 2024, and a 34.98% premium against the six-month volume-weighted average price leading up to that date. The transaction values Eckoh's issued and fully diluted share capital at approximately £161.8 million, implying an enterprise value of around 15.9 times Eckoh's adjusted EBITDA for the year ending March 31, 2024.
Eckoh's board views the acquisition as an attractive premium that provides full value for the business when compared to recent mergers and acquisitions involving technology companies listed on the UK stock exchange. The acquisition, to be carried out by Bridgepoint, a global private equity growth investor, is expected to complete in the first quarter of 2025, subject to shareholder approval and court sanction.
Bridgepoint has outlined plans to drive Eckoh's growth through geographic expansion, product innovation, and targeted acquisitions. These plans aim to leverage the company's strong position in a niche market characterized by rising demand for secure data protection in customer interactions.
The Eckoh management team, led by CEO Nik Philpot and CFO Chrissie Herbert, supports the acquisition and sees it as an opportunity to accelerate their investment strategy and achieve long-term growth with greater flexibility under private ownership. The management team has also entered into transfer agreements with Bidco, in which they will reinvest part of their shares.
The acquisition has received unanimous support from Eckoh's independent directors, who recommend shareholders vote in favor of the plan. Major shareholders have indicated their support through irrevocable commitments and a letter of intent.
Eckoh, with over 20 years of experience in call 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 ending March 31, 2024, Eckoh reported revenues of £37.2 million and adjusted EBITDA of £10.2 million.