Blue Prism fights back after shareholder criticized nearly £ 1.1bn takeover bid

A Warrington-based software developer has defended his plan to buy out nearly £ 1.1bn by a US private equity firm after one of its shareholders urged others to vote against it.

Coast Capital sent a letter to Blue Prism’s board of directors following the announcement of the deal with Vista Equity Partners in late September.

The company said it would encourage other shareholders to reject Vista’s 1,125 pence per share offer and added that the offer undervalues ​​the listed company, which makes intelligent software for robotic process automation.

READ MORE: Airbnb, Burger King and investor Spotify end Blue Prism lawsuit after nearly £ 1.1bn takeover deal

When the deal was announced, Blue Prism, whose customers include automaker Daimler, eBay and Britain’s NHS, said it planned to recommend shareholders vote in favor of the Vista offer.

In a new statement released to the London Stock Exchange, Blue Prism set out its defense of the proposed deal.

He said: “The Board of Directors, with the support of its independent advisors, conducted an in-depth four-month market research which included outreach to 15 strategic parties and 12 financial sponsors (including Vista and TPG) and initially resulted in the submission of two non-binding proposals from Vista and TPG to acquire the company.

“After discussions and negotiations with both parties, Vista submitted its final proposal which represented both the highest value in the process and superior to the company’s stand-alone alternatives, which the board of directors concluded was deserved to be recommended to the shareholders of Blue Prism.

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“The board’s decision to recommend the Vista offering reflects their belief that the Vista offering offers greater value and less risk than Blue Prism’s current stand-alone perspectives and potential stand-alone alternatives.

“While Coast says it has ‘communicated the operational improvement plan developed with industry experts and previous management team members over several months’, it has yet to provide the company with a detailed plan, including funding for such a plan, capable of evaluation by the board of directors of Blue Prism.

“The Blue Prism process has been led by an experienced board of directors with the support of highly qualified independent advisors.

“In response to feedback from the company’s shareholders, the company has carried out a significant refresh of the board of directors with the addition of three independent non-executive directors this year, all of whom have led the shareholder consultation process described in Announcement 2.7 and were closely involved both in the board’s strategic review and in the evaluation of the Vista offer.

“The Board of Directors of Blue Prism has determined that the acquisition is in the best interests of the shareholders of Blue Prism, providing immediate value without the execution risks associated with the necessary strategic investments contemplated.

“The Board of Directors appreciates the constructive feedback it has received from Blue Prism shareholders and looks forward to increased engagement with investors in the coming weeks.”

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