LONDON - Equals Group PLC, a UK-based payment services provider, has agreed to an all-cash acquisition by Alakazam Holdings BidCo Limited, a consortium led by TowerBrook Funds, J.C. Flowers Funds, and Railsr Shareholders. The deal, valued at approximately £283 million, will see Equals shareholders receive 140 pence per share, which includes a 135 pence cash consideration and a 5 pence special dividend.
This offer represents a significant premium over Equals' recent share prices, including a 37% increase over the closing price on October 31, 2023. The acquisition is expected to be completed through a scheme of arrangement under the Companies Act, requiring approval from Equals shareholders and the court, with the anticipated effective date in Q2 2025.
The consortium aims to combine Equals with Railsr, an embedded finance platform acquired earlier by a group led by D Squared Capital, to create a market-leading business in the B2B international multi-currency banking and payments market. The combined entity is expected to benefit from synergies between Equals' payment services and Railsr's embedded finance solutions.
Equals Group has established a strong position in the payment services sector, offering a variety of technology-enabled products for corporate and personal clients. The acquisition by the investor consortium is intended to capitalize on Equals' scalable platform and robust financial performance, with the goal of accelerating growth and expanding market reach.
The Equals directors, advised by Canaccord Genuity and Lazard (NYSE:LAZ), have unanimously recommended that shareholders vote in favor of the acquisition, and along with other shareholders, have provided irrevocable undertakings to support the deal, representing approximately 16.486% of the company's issued share capital as of December 10, 2024.
The proposed acquisition is based on a press release statement and is subject to certain conditions, including regulatory approvals. Further details regarding the transaction will be provided in the Scheme Document to be distributed to Equals shareholders and made available on the company's website.
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