FTSE 250 firm Gamma Communications is set to go private in a £1 billion deal.
London private equity house Epiris has agreed terms with the board of the technology firm, which will now seek shareholder approval for the takeover.
Gamma, led by CEO Andrew Belshaw (pictured), is a European business communications tech provider which employs more than 2,000 people.
In May it announced that it was in talks with Providence Equity Partners about a possible takeover bid, and soon afterwards it also opened discussions with Epiris.
In June the two private equity houses formed a consortium. However Providence pulled out of any potential deal later in the month. PE firm Oakley Capital also withdrew from its pursuit of Gamma in June.
Gamma, whose core markets are the UK and Germany – with additional presence in Spain and the Benelux region – completed a restructuring last year to slash annual operating expenses by £7 million.
Its valuation suffered, making it a target for acquisition. The deadline for Epiris to make a bid has repeatedly been extended, leading to a rebound in its share price.
The agreed deal, for £11.20 in cash per Gamma share, values it at £1.02bn.
It represents a 53% premium to the £7.32 price on 7th April 2026, when talks began. Gamma’s share price is now £11.67, having risen 22% in the last month.
Epiris says it has a robust understanding of Gamma’s lines of business and industry dynamics. It has considerable experience in the telecommunications sector in the UK, including its investments in July 2022 in Sepura, a global leader in the design, development and supply of digital radio devices and associated ecosystems, and in June 2022 in Appello, a technology enabled care and digital monitoring provider which has been used as a platform to acquire other businesses.
“Gamma is a complex and highly resilient business, with strong market positions in the UK and Germany and a growing presence across Europe,” said Ian Wood, partner at Epiris.
“Epiris has followed the company, and the wider telecoms sector, closely for a number of years, and we are excited to work with Gamma’s management team to continue its growth as a private company.
“We believe that the acquisition represents a compelling and deliverable offer which provides Gamma shareholders with certainty of value. We are delighted to have the support of HarbourVest and Limewood Capital as co-investors in this transaction.”
Martin Hellawell, chair of Gamma, said: “Gamma has built a leading position in European business communications through sustained investment in its products, technology, people and customer relationships.
“The board remains confident in the company’s strategy and long-term prospects. The board has nevertheless concluded that the acquisition provides Gamma shareholders with attractive and certain value in cash.
“Having considered the terms of the acquisition carefully, the board intends unanimously to recommend it to Gamma shareholders.”