Bridgepoint Advisers has made a recommended £626 million cash bid for Alpha Financial Markets Consulting (Alpha FMC), the London-listed financial service consultancy.
Alpha FMC would be the latest UK-listed company to be snapped up by private equity groups seeking out undervalued companies.
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Under the proposed deal, Alpha FMC shareholders would receive 505p per share in cash. This represents a premium of 50.7% to Alpha FMC’s closing share price of 335p on 30 April 2024.
The 505p per share offer prices Alpha FMC at approximately 15.3 times its pre-IFRS 16 adjusted EBITDA of £39.9 million for the year ended 31 March 2024. On a post-IFRS 16 basis, the multiple is 14.5 times adjusted EBITDA of £42.2 million.
Bridgepoint sees Alpha FMC as an ideal addition as the sector is expected to benefit from digital transformation, increasing regulation, product complexity, cost pressures and growth in assets under management.
Bridgepoint has extensive experience investing in specialist consulting firms as well as expertise across asset management, insurance and financial technology. Its investments in this space include eFront, Calypso, Kyriba and Fenergo.
The 505p per share final offer will not be increased unless a rival bid emerges or with UK takeover regulator consent. Alpha FMC’s board is recommending that shareholders accept the “fair and reasonable” offer.