Kalibrate Agrees To Takeover Offer From Turnaround Specialist Hanover

LONDON (Alliance News) - Kalibrate Technologies PLC said Tuesday it has agreed to a cash ...

Alliance News 13 June, 2017 | 10:55AM
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LONDON (Alliance News) - Kalibrate Technologies PLC said Tuesday it has agreed to a cash takeover offer from Hanover Active Equity Fund LP, valuing the company at GBP29.0 million.

Kalibrate supplies software products and services for the fuel and convenience retail industry.

The 85.5 pence per share offer is at a 50% premium to Kalibrate's middle market price of 57p per share at June 1, the day prior to Hanover's initial approach.

Shares in Kalibrate were up 46% at 83.27p Tuesday morning.

Kalibrate's directors will unanimously recommend the offer from turnaround specialist Hanover, which has received irrevocable undertakings in support of the offer in respect to 40% of Kalibrate shares. The takeover is conditional on acceptance of more than 50% of shares.

In its financial year ended June 2016, Kalibrate reported pretax profit of USD1.8 million and revenue of USD34.9 million. However, it swung to an interim loss of USD700,000 in the six months to the end of December and saw revenue decline, hit by the strength of the dollar and delayed closing of some deals.

In a joint statement by the companies, Hanover said it believes Kalibrate is unable to fulfil its growth potential while listed, with revenue volatility associated with perpetual software licences and significant cost investments leaving its profit profile "not suited to the public market".

"We continue to make good progress within our core markets, deepening our customer relationships and winning additional contracts. With continued investment in our new products of Merchandise Pricing/Promotion and B2B/Wholesale Pricing we are developing additional growth opportunities with our client base," said Kalibrate Chief Executive Bob Stein.

"Whilst this strength underpins our belief in our products and long-term growth plans, the time and investment required to convert those growth ambitions continue to extend, compounded by the delays in deregulating markets that we've previously announced. I, along with the rest of the Kalibrate board, intend to recommend the offer," added Stein.

By Adam Clark; adamclark@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

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