LONDON (ShareCast) - (Sharecast News) - US investment firm Long Path said on Tuesday that it has agreed to buy AIM-listed software provider Idox in a £339.5m deal.
Under the terms of the agreement, shareholder Long Path will pay 71.5p per share in cash. This is a premium of about 26.8% to the closing share price on Monday.

Long Path said it plans to invest in Idox's product suite, including injecting about £5m into the business at close to fund initiatives "that will improve several aspects of the customer experience".

Idox chair Chris Stone said the offer provides shareholders with an "attractive, certain value in cash today that reflects the quality of our business and its people".

"While we remain confident in Idox's standalone prospects, the board also notes Bidco's plans to invest in Idox's product suite and intentions to support continued investment in the business. Following careful consideration, as a board we have unanimously concluded that the acquisition is in the interests of our key stakeholders," he added.

Brian Nelson, partner and portfolio manager of Long Path, said: "We are thrilled to partner with the Idox team to steer the company through its next phase of growth. As long-time shareholders of the business in the public markets, we have long admired the business and the team's execution. Idox has demonstrated a remarkable ability to deliver world class, mission-critical software solutions to government and commercial customers in the UK and around the world.

"In our view, Idox's public listing no longer best serves the company's long term development prospects. Our partnership is built on a shared belief in Idox's people, products, and purpose. Together, we will accelerate investment in product and innovation, enhance the customer experience, and strengthen Idox's position as a leader in delivering critical digital infrastructure."

At 0820 GMT, the shares were up 24.5% at 70.20p.

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