Alchemy outbids Torex for Radius

Buyout Torex finally ousted in struggle for management buyout.

The battle for beleaguered systems integrator Radius has reached its conclusion following an aggressive stock buying spree by management buyout (MBO) financiers Alchemy Partners.

The MBO, led by Radius chief executive Phil Kelly and finance director Lawrence Bland, appeared to have floundered when the Alchemy-backed 55p per share offer was challenged last week by a stock swap bid from rival systems integrator Torex (PC Dealer, 12 August).

However, Alchemy's last ditch attempt to slap down the Torex bid has saved the Radius MBO by vehicle company Sudiar. The Sudiar offer had only achieved 37.4 per cent acceptance from the shareholders, leaving the door open to Torex. But the Torex share offer was trumped by Alchemy snapping up stock, bringing the level of acceptance to 65.4 per cent and raising the cash offer to 62p per share on 11 August.

Bland said: 'It's almost done now. We have to wait for a few technicalities, but with 65 per cent of shares it's impossible for another company to get control. Hopefully we'll soon be able to get back to running the business.' He added that Radius hoped the deal would be completed by the end of August.

Mark Pearman, financial director of Torex, responded: 'We're very disappointed: it would have been a great fit and in the best interest of the shareholders.

That's it now, the bid is over.'

Bland added the Torex share offer had become less attractive as time went on, due to its declining share price since the announcement - from a high of 151.5p to 114.5p. Radius shares were hovering around the 60p mark after climbing from a low of 26.5p to a high of 62.5p. The move will allow the MBO team to take Radius private.

The Torex bid was an attempt to increase its number of acquisitions this year to five. Its last purchase was Swindon company Quota Computer Associates last month.