US private equity firm Vista has dropped out of the bidding war for Blue Prism.
The board of the Warrington-headquartered robotic process automation company provisionally agreed a £1.1 billion takeover with Vista in September, with shares priced at 1,125 pence apiece.
However, a backlash over concerns that the offer undervalued the business – one of the largest tech firms on the London Stock Exchange’s junior AIM market – led to a bidding war with American FinTech SS&C Technologies entering the fray.
Vista increased its offer to £1.22bn but last week SS&C agreed a 1,275p-per-share deal, which prices Blue Prism at £1.24bn.
Vista did not up its offer in the four-day window following the offer, with the board of Blue Prism now recommending that shareholders accept the SS&C deal.
The offer represents a 53% premium on the closing share price when the offer period commenced in August.
Earlier this year, shareholders blocked the appointment of a new CEO and chairman, causing Blue Prism to invite meetings with senior shareholders – many of whom then urged the board to explore a sale.
A leading player in automation of back office tasks for enterprise companies, Blue Prism has users globally in more than 2,000 businesses, including Fortune 500 companies, and employs 1,000 people.
However, the Warrington-headquartered company has seen its share price dip 30% this year and has come under fire in recent times for a perceived lack of investment in future products.