A software company listed in London for a quarter of a century looks set to be taken private.
Idox plc, headquartered in Woking, has agreed a deal with shareholder Long Path, a US-based investment manager, which values it at £340m.
Shareholders will now vote on the offer.
Long Path, a shareholder in the firm for the last seven years, holds 12% of the issued share capital of Idox. It claims to have secured the support of shareholders holding 35% of the company.
Idox serves the public and private sectors, helping organisations to digitise complex workflows, manage critical information assets, and improve operational efficiency. It has delivered applications across areas such as planning, regulatory compliance, engineering information management, and elections technology.
Since its admission to AIM in December 2000, Idox has grown revenues from £1.2m to £87.6m.
“Despite the performance and strategic prospects, the Idox share price has traded within a relatively narrow range for a number of years,” stated Idox, led by CEO David Meaden (pictured).
“The Idox board acknowledges Idox is operating in a challenging macroeconomic environment and that there are execution risks associated with pursuing its strategy. These ongoing risks, combined with wider public market liquidity pressures in the UK market have contributed to the current valuation.
“The Idox board considers that there are certain advantages of being a private company – in particular in the ability, more easily, to forgo short term profitability in pursuing longer term growth; and also in terms of executing material acquisitions.
“The Idox board notes and welcomes Long Path’s intentions regarding Idox and its planned level of increased investment and, over time, growth in the overall headcount of the business.”
Long Path, which makes concentrated, long-term investments across public and private markets, currently has approximately $1.6 billion of assets under management. It has created a shell company to execute the takeover.
The acquisition price represents a premium of approximately 26.8% to the closing price of Idox shares on Monday. It also represents the highest price per Idox share since November 2021.
The acquisition represents an implied enterprise value multiple of 21x cash EBITDA based on FY2024 figures.
“After observing recent industry and capital market trends, Long Path believes that Idox would benefit from private ownership,” stated Long Path. “Operating as a private company, Idox would be well-positioned to invest in product and technology to satisfy evolving customer demands and drive organic growth while positioning the company for long term success in a dynamic environment.
“Furthermore, the management team would be able to focus on long term strategic priorities, customer needs, and employee concerns without the rigorous demands of the short-term targets associated with a public listing.”
The acquisition is currently expected to complete during Q1 2026.
“The offer recognises the work undertaken by the board, management and employees of the Idox business and provides Idox shareholders with an attractive, certain value in cash today that reflects the quality of our business and its people,” said Chris Stone, chair of Idox.
“While we remain confident in Idox’s standalone prospects, the board also notes [Long Path’s] plans to invest in Idox’s product suite and intentions to support continued investment in the business. “Following careful consideration, as a board we have unanimously concluded that the acquisition is in the interests of our key stakeholders.”
Brian Nelson, partner and portfolio manager of Long Path, said: “We are thrilled to partner with the Idox team to steer the company through its next phase of growth. As long-time shareholders of the business in the public markets, we have long admired the business and the team’s execution.
“Idox has demonstrated a remarkable ability to deliver world class, mission-critical software solutions to government and commercial customers in the UK and around the world. In our view, Idox’s public listing no longer best serves the company’s long term development prospects.
“Our partnership is built on a shared belief in Idox’s people, products, and purpose. Together, we will accelerate investment in product and innovation, enhance the customer experience, and strengthen Idox’s position as a leader in delivering critical digital infrastructure.”
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