25 May 2012

Patsystems agrees £28.6m bid

20/12/2011 Miles Nolan

Trading software supplier Patsystems (PTS) has tied up a £28.6 million cash offer from its largest shareholder, which equates to 14p a share.

Last month the AIM listed company admitted it had received a bid approach at this level, a move which follows a sharp reversal in its fortunes. The failure of its largest customer MF Global has impacted trading, with as much as £900,000 still owed to Patsystems as a result of the collapse.

It hopes the migration of customers to other brokerage houses will help secure future revenues, but as yet there has been a minimal release of client funds outside the US. Indeed, Patsystems has also warned today that revenues and profits will be £500,000 lower than expected.

The bid has been launched by Pattington, a member of the software giant ION Group (a 27.91 per cent shareholder). In addition, Patsystems has received irrevocable acceptances from all its directors, Herald Investment Management and Kabouter. Letters of intent from shareholders Cazenove and Henderson Global are also on the table.

Including all these, the bid has secured 48.3 per cent acceptances, so looks likely to go ahead. The deal brings greater stability to its customers and employees, as well as providing the certainty of cash to Patsystems shareholders. It represents a 45.4 per cent premium to the share price immediately prior to the talks.

Tags: AIM market, Cash bid, Decent premium, MF Global, Recommended deal

Sector: Software & Computer Services

Companies: Patsystems

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