US service provider Aptean is acquiring UK-based ERP and SCM solutions specialist Sanderson for just over £90m, as part of its European expansion strategy.
The transaction represents a premium of around 9.8% on the 31 July Sanderson share price of 127.5p. Aptean, which also provides ERP and SCM solutions to the manufacturing industry, was formed from the 2012 merger of Consona and CDC.
Aptean has around 1,500 staff and, as well as its core North American market, has operations in mainland Europe, Israel and China, with a presence in the UK and India.
Aptean is controlled by funds managed by TA Associates and Vista Equity Partners. Hythem El-Nazer, managing director at TA Associates, said: "When we made our investment in Aptean earlier this year, a key tenet of our investment thesis was to leverage TA Associates' global footprint to expand Aptean's reach in the UK and more broadly in Europe.”
Sanderson recently released a strong set of half-year results, with sales jumping 18% to £17.2m and operating profits up 34% to £2.8m. Sanderson focuses on mobile, ecommerce and business intelligence solutions for the retail, wholesale and supply chain sectors. Earlier this year, it announced the acquisition of supply chain solutions specialist Gould Hall Computer Services.
Christopher Winn, chairman of Sanderson, said: "The board of Sanderson is unanimously recommending this offer to shareholders, viewing it as an endorsement of the board's strategy and achievement of its execution to date.
“Considerable shareholder value has been delivered by a progressive dividend policy over the years and this offer now enables shareholders to realise the rewards for their patience, support and investment over the past few years."
TVN Reddy, chief executive officer of Aptean, said: "The acquisition of Sanderson is a significant development for our business, it provides us with a critical entry-point into the UK market, building upon our leading position in the US market and granting an opportunity to accelerate our strategy of becoming the leading global provider of mission critical ERP and supply chain management software to the manufacturing, distribution and other focused industries.”
