£8.5m all cash offer made for Dundee-based cash machine software developer
Cash machine advertising software developer i-design Group is recommending its shareholders accept an all cash offer for the company worth £8.5 million.
Dundee-based i-design said it has reached an agreement with Cardtronics UK, a subsidiary of US-based Cardtronics Inc, for the entire issued share capital priced at 60 pence per share – a premium of 160.9 per cent on yesterday's closing price of 23 pence.
Based on the average share price over the last 12 months, Cardtronics' offer represents a premium of 51.1 per cent based on an average closing price of 39.7 pence.
Shares in i-design rose 154 per cent in early trading today to 58.5 pence.
I-design's directors, who were advised on the deal by Deloitte, said they “consider the terms of the offer to be fair and reasonable” and intend to recommend unanimously that i-design shareholders accept the offer”.
James Faulds, chairman of i-design, said: “The board of i-design is pleased to recommend unanimously this offer from Cardtronics.
“The offer will allow i-design shareholders to realise a significant cash premium for their shares and provide i-design with the opportunity to accelerate its growth and widen its reach in a way not currently available.
“We believe the offer is a good outcome for all i-design stakeholders.”
Steve Rathgaber, chief executive of Cardtronics,added: “At Cardtronics, we gravitate to opportunities and environments where the company can draw multiple sources of revenue from a single ATM by providing additional services.
“Adding i-design and its capabilities fits that model and makes sense for our shareholders.
“Cardtronics can leverage its existing financial institution and retailer relationships to expand i-design's global market position, which in-turn enhances the value proposition Cardtronics can offer its customers, as well as consumers using our ATMs.”