GB Group shares surge as it confirms takeover interest
Shares in software firm GB Group surged today as it confirmed a potential takeover swoop from US private equity firm GTCR, making it the latest British tech firm to fall into the sights of a foreign buyer.
GBG, which provides identity verification, location intelligence and fraud prevention software, confirmed this morning that GTCR was eyeing a takeover, after the Chicago investor said last night it was mulling a bid for the firm.
The confirmation sent shares in GBG soaring above 22 per cent this morning, putting its valuation above £1.61bn.
GTCR now has until the 4th October to make a firm offer for the firm although it said last night “there can be no certainty that any firm offer will be made”.
The takeover interest is likely to cause concern in some quarters as GBG becomes the latest in a string of UK tech firms to be pounced on by bargain-hunting foreign buyers.
France’s Schneider Electric two weeks ago confirmed it was considering a full buyout of software group Aveva, while Canadian firm OpenText said it was poised to snap up Microfocus in a £5bn deal.
Tech darling Darktrace, which is due to announce interim results tomorrow, has also fallen into the sights of US tech buyout giant Thoma Bravo.
A slump in the pound, the lingering impact of Brexit and a looming recession have dragged on London’s markets and made UK firms a cheap prospect for overseas buyers.
Lawyers are predicting that takeover activity is likely to remain frenzied for the rest of the year as British businesses remain a tempting prospect.
Corporate partner at law firm Eversheds Sutherland Jon Gill told City AM last month said he expects to “see more such transactions in the months to come” as US private equity giants remain flush with cash and prices of UK tech firms in particular remain subdued.