Sopheon Shares Soar on Potential Takeover by Wellspring Worldwide
Shares of Sopheon rise 89% as Wellspring Worldwide considers possible takeover, with projected valuation of £114.9 million ($139.8 million). Both companies believe the potential merger will create a more robust product and services portfolio.
Troy D. Hanson
October 31, 2023
Shares of Sopheon, a provider of software and services, experienced a significant increase after announcing key terms for a possible takeover by Wellspring Worldwide. The valuation of this transaction is projected to be £114.9 million ($139.8 million).
At 13:14 GMT, shares rose 89% to 925.0 pence, a gain of 435.0 pence.
Wellspring subsidiary IOps Buyer is prepared to offer £10 per share, which is more than double Sopheon's closing share price of 490 pence on Monday.
The deal is progressing well, with the completion of due diligence and advanced discussions. Sopheon's management team intends to unanimously recommend accepting the offer, if it is made under these terms. Furthermore, stakeholders representing 37.3% of Sopheon's share capital have given irrevocable undertakings to support the takeover.
Under U.K. Takeover Rules, Wellspring, which is supported and controlled by Resurgens Technology Partners, a tech-focused private-equity firm, has until November 28 to announce a firm intention to make an offer or withdraw. However, there is no guarantee that a formal offer will be made.
Both companies believe that combining their strengths will create an even more robust product and services portfolio for their respective clients.
Sopheon also expressed confidence in its full-year outlook.