GlobeOp has reached an agreement with private equity firm TPG to acquire share capital of the business for 508 million in cash.
The hedge fund administrator said today the offer had been accepted in respect of a total of 46,273,535 Shares, representing about 43.85% of the entire share capital of GlobeOp.
The announcement follows the hedge fund administrators Jan. 6 2012 announcement that it was in talks with TPG and Advent International, another private equity company, regarding possible offers as the company undertakes a strategic review in order to boost its share price.
Under the agreement, TPG will acquire the entire share capital of GlobeOp. GlobeOp shareholders will be entitled to receive 435 pence in cash for each share held. The offer price represents a premium of about 48.5% to the closing price per share of 293 pence on Jan. 5 2012 (being the last business day prior to GlobeOps announcement that it was in discussions with TPG). The offer price also presents a 22.5% premium to the closing price per share of 355 pence on Jan. 31 2012 (being the last business day prior to the date of this announcement).
In addition, the offer implies an enterprise value multiple of approximately 11.0 times GlobeOps adjusted operating profit for the 12 months ended June 30 2011 and fully diluted equity value multiple of approximately 20.6 times GlobeOps net income for the 12 months ended June 30 2011.
TPG also has a history of investing in the broader financial services sector, with significant investment in areas including: banking (Bank Thai, BTPN, EverBank, Saxo Bank, Shenzhen Development Bank, Taishin Holdings and VTB), asset management (American Beacon and LPL Financial Services), Insurance (ArielRE, Direct General, Endurance and ProSight) and specialty finance (AerFi, Shriram and Tygris).
Commenting on the Offer, Ed Nicoll, Chairman of GlobeOp, said: We welcome TPGs Offer, which is the result of an extensive and competitive process over the last few months. We commenced the strategic review to ascertain whether there was an opportunity to create value for shareholders and we believe that this Offer achieves that aim. The Independent Directors believe that the Offer represents good value and an attractive balance between the future opportunities and risks facing the business and have therefore decided to recommend TPGs Offer to shareholders.
Commenting on the Offer, Bryan Taylor, Partner of TPG, said: TPG is delighted to announce todays formal offer for GlobeOp. GlobeOp is a strong global financial services company with a high quality offering and a robust business model, which we plan to invest in and grow. TPG is committed to enhancing GlobeOps position as a leading independent operator and to working with its customers, employees and management to continue the success of the Company.
GlobeOp was advised by Evercore Partners and TPG was advised by J.P. Morgan Cazenove.
(JDC)