Gamma Communications has agreed to a £1.015 billion cash acquisition by private equity firm Epiris.
As part of the deal, Bradbury Bidco Limited, a newly created company formed by funds managed or advised by Epiris GP III Limited, will make an offer for all of Gamma’s issued and to-be-issued ordinary shares.
The offer values Gamma’s equity at approximately £1.015 billion, while its total enterprise value is estimated at around £1.079 billion.
The acquisition is expected to be implemented through a Court-sanctioned scheme of arrangement under the Companies Act.
Epiris said it believes Gamma is a leading European communications technology company and highlighted the company’s growth outside the UK, new products and strong relationships with small and medium-sized businesses, larger companies and business partners.
The private equity firm also believes Gamma can grow faster by investing more in new products, innovation and AI.
Commenting on the acquision, Chair of Gamma, Martin Hellawell, said: “Gamma has built a leading position in European business communications through sustained investment in its products, technology, people and customer relationships.
“The board remains confident in the company’s strategy and long-term prospects. The Board has nevertheless concluded that the Acquisition provides Gamma Shareholders with attractive and certain value in cash. Having considered the terms of the acquisition carefully, the board intends unanimously to recommend it to Gamma Shareholders.”
Epiris Partner, Ian Wood, said: “Gamma is a complex and highly resilient business, with strong market positions in the UK and Germany and a growing presence across Europe. Epiris has followed the company, and the wider telecoms sector, closely for a number of years, and we are excited to work with Gamma’s management team to continue its growth as a private company.
“We believe that the acquisition represents a compelling and deliverable offer which provides Gamma Shareholders with certainty of value. We are delighted to have the support of HarbourVest and Limewood Capital as co-investors in this transaction.”
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