Astorg has backed out of bidding for Ideagen, the Nottinghamshire-based software firm.
It was revealed that the private equity firm had proposed a cash offer for the company at the start of May, as had Hg, coinciding with private equity firm Cinven confirming it did not intend to move forward with an offer for the business.
An announcement today reads: “Further to the announcements made by Ideagen on 5 May 2022 and 9 May 2022 in which Astorg was identified as a potential bidder for Ideagen, Astorg today confirms that funds represented by Astorg do not intend to make an offer for Ideagen.”
Meanwhile, Hg has put forward an offer to acquire Ideagen, valuing the business at £1.05bn.
Revealing this, Richard Longdon, non-executive chairman of Ideagen, said: “The Ideagen directors unanimously intend to recommend the offer to shareholders.
“The all-cash offer represents a compelling and attractive opportunity for shareholders to realise and crystallise their investment in Ideagen in the near term and also provides a significant premium to the prevailing share price notwithstanding the backdrop of the wider risks posed by the political and macro-economic environment.
“The offer reflects the quality, strength and long-term performance of Ideagen’s businesses and its future growth potential. We believe that Hg’s track-record and expertise in supporting and growing software businesses would provide a complementary partner for Ideagen’s stakeholders.”
Christopher Fielding, Joris Van Gool and Jean-Baptiste Brian, partners at Hg, said: “At Hg, we have spent over 20 years focused on the business-to-business software space. We have long admired how Ben and his highly motivated team have grown Ideagen into a leader in its sector.
“Our experience in the sector gives us strong conviction that Ideagen represents a high-quality platform, and we are committed to providing additional capital and resources that are required to further support and enhance Ideagen’s next phase of growth.
“Hg has a strong track record of investing in and growing UK-based software businesses. We recognise that Ideagen is a global organisation with stakeholders around the world, but with deep community ties and a strong local heritage. We strongly believe that the core of the business should be maintained in its Nottingham base, including its executive team and technological development centre.”
