US acquisition bid boosts shares of FD Technologies
Rewritten Article:
Stock prices for Northern Ireland tech giant FD Technologies skyrocketed on Wednesday, hinting at a potential US takeover.
The company, listed on the AIM, received a takeover proposal from US private equity firm TA Associates. The proposal involves a possible cash offer of 2,450p per share, valuing the company at approximately £550m. This surpasses the firm's closing price of 1,930p on Tuesday by a considerable margin.
In a statement, the board confirmed that should a firm offer be made on the same terms, they would likely advocate in favor of the deal for the shareholders. Shares increased by 23% to 2,380p during midday trading on Wednesday.
Is FD Technologies Leaving AIM?
FD Technologies was founded by Brian Conlon in 1996 under the name First Derivatives. The Conlon family still holds a 10% stake in the firm. With around 3,000 employees globally, the company specializes in delivering high-performance analytics and real-time data processing solutions.
In October 2024, FD Technologies sold its First Derivative consulting arm to US software company EPAM Systems for £230m. This decision was part of the company’s restructuring to concentrate more on the growth potential of its KX data platform.
Additionally, the company merged its marketing technology division, MRP, with US firm CONTENTgine, but reduced its stake in the new entity.
If FD Technologies decides to leave the AIM market following a potential takeover, it would join a growing trend that has left the market at its lowest since 2001.
For instance, Synairgen, a University of Southampton spin-off focusing on respiratory drugs, delisted in 2024 following a shareholder vote. The company cited the drawbacks of being listed on AIM, such as high costs and limited access to capital, as reasons for the decision.
Brighton Pier Group, the owner of the iconic Brighton Palace Pier, also delisted during its transition into a private company in the previous year.
TA Associates has until June 4 at 5pm to either announce a firm intention to make an offer or declare that it will not pursue the acquisition. An extension of the deadline may be granted with the approval of the Takeover Panel.
TA Associates retains the right to modify its offer under less favorable terms if specified conditions are met.
- If FD Technologies decides to accept the takeover proposal from TA Associates, it may signify a shift from the AIM market, following the trends of Synairgen and Brighton Pier Group, both of which delisted from AIM due to its high costs and limited access to capital.
- As FD Technologies' stock prices soar on the possibility of a US takeover, there's speculation that the company's focus in finance and technology could extend beyond its current business operations, potentially impacting the finance and technology sectors significantly.
