SoftwareOne kicks off strategic review after shooting down second Bain Capital bid
The Swiss group is now weighing up its options after Bain Capital fails again to make an offer it feels reflects its value
SoftwareOne is mulling over its next steps after turning down Bain Capital's second acquisition offer.
The private equity firm made an offer of £2.8bn (CHF 3.2bn) on Friday after its initial bid of £2.5bn (CHF 2.7bn) was rejected for materially undervaluing SoftwareOne.
The cloud solutions provider has now shot down Bain's second, revised offer for the same reason.
"The board unanimously agreed that the second indicative offer does not adequately value the company and is not in the best interest of SoftwareOne and the majority of its shareholders," the group said in a statement.
The Switzerland-based company has now initiated a strategic review process to ensure it has considered all options for value creation, including continuing to operate as a public company, a merger or sale, as well as other possible strategic transactions.
SoftwareOne delivered group revenue growth of 14 per cent year on year to £909m (CHF 1.011bn) in its full-year 2022 results.
Earlier this year, the board unanimously voted to appoint Brian Duffy as CEO and shareholders elected Adam Warby as chairman, to transition the company into a new phase of operational excellence and growth, leading to future value creation.
In response to the second indicative offer by Bain Capital, the board believes a strategic review of all potential options that drive value is in the best interest of SoftwareOne and all shareholders.
"The board is open to proactively discuss options that substantially reflect the fundamental value of the company, including with Bain Capital. At the same time, the board will actively look at other options for value creation," SoftwareOne said.
Adam Warby added: "At SoftwareOne, we are deeply committed to delivering value to all our shareholders, while acting in the best interest of all stakeholders.
"We have decided to launch a strategic review to ensure we deliver on this commitment - by considering all potential options and making the decisions that will maximise shareholder value, enhance our operations, and position the company for growth.
"The fast-growing software and cloud market offers attractive opportunities, and we want SoftwareOne to be in the best possible position to capitalise on these and gain market share worldwide."