£220m bid for Systems Union

Luxembourg-based software group Extensity, which is backed by San Franciscan venture capital house Golden Gate Capital, has launched a £220.5 million takeover bid for Systems Union, one of the largest software business listed on London’s AIM market.

Luxembourg-based software group Extensity, which is backed by San Franciscan venture capital house Golden Gate Capital, has launched a £220.5 million takeover bid for Systems Union, one of the largest software business listed on London’s AIM market.

The board of Systems Union – developer of software solutions for the financial services industry – have approved the offer of 215p per share, which has been made via Extensity subsidiary Bidco. Explaining the reasoning behind the deal, Systems Union chief executive Paul Coleman states that the transaction not only offers ‘shareholders the potential to realise enhanced capital value’ but also provides the company an opportunity to become ‘part of a substantial merged group with combined revenues in excess of $500 million.’

Amongst the biggest beneficiaries of the deal will be serial growth company backer Bob Morton, who currently chairs the group and holds a 6.1 per cent stake.

Systems Union generated a £6.9 million profit from revenues of £113.4 million last year.

Alan Dobie

Johnathon Jacobs

Alan Dobie was assistant editor at Vitesse Media Plc before moving on to a content producer role at Reed Business Information. He has over 17 years of experience in the publishing industry and has held...

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