SSP Holdings

Recently recommended by Growth Company Investor as a strong buy at 136.5p, shares in insurance software group SSP have soared on news the group is being taken over by US private equity group Hellman & Friedman.

Recommended by the board, the cash offer, pitched at 190p per share, values SSP at £198m (including debt) and represents a handsome premium of more than 47% to the prevailing 129p price before SSP flagged up takeover talks. Moreover, it gives investors who bought on our advice the opportunity to swiftly bank gains of 40% in cash.

Floated on AIM in October 2006 and led by executive chairman David Rasche, SSP is a fast-growing provider of business-critical IT systems and services to the general insurance sector in the UK, as well as selected international markets. It has grown organically as well as through acquisitions, such as last year’s successful £43m takeover of rival Sirius.

Alongside the takeover details, the company also issued stellar numbers for the year to March, which showed sales increased by 67% to £64.4m, with organic growth running at 12%. Pre-tax profits rose by 38% to £8.8m, whilst profit before tax and exceptional items moved north from £6.6m to £10.3m. We say accept the offer.