Gamma Communications has accepted a takeover offer from private equity investor Epiris valued at £1.015 billion in cash. The transaction will be executed by Bradbury Bidco Limited, a special-purpose entity established by funds under the management or advisement of Epiris GP III Limited, which will seek to acquire all outstanding and future ordinary shares in Gamma.

The equity valuation stands at roughly £1.015 billion, with the deal's total enterprise value reaching approximately £1.079 billion. A Court-sanctioned scheme of arrangement under the Companies Act framework is expected to facilitate the acquisition's completion.

Epiris views Gamma as a prominent player in European communications technology, pointing to its international expansion beyond Britain, emerging product offerings and robust partnerships spanning small and medium enterprises through to large corporations and industry collaborators. The investor sees potential for accelerated growth through heightened investment in product development, technological advancement and artificial intelligence capabilities.

Gamma has built a leading position in European business communications through sustained investment in its products, technology, people and customer relationships. The board remains confident in the company's strategy and long-term prospects. The Board has nevertheless concluded that the Acquisition provides Gamma Shareholders with attractive and certain value in cash.

Martin Hellawell, Chair of Gamma

Hellawell added that the board intends unanimously to recommend the acquisition to shareholders after careful consideration of its terms.

Gamma is a complex and highly resilient business, with strong market positions in the UK and Germany and a growing presence across Europe. Epiris has followed the company, and the wider telecoms sector, closely for a number of years, and we are excited to work with Gamma's management team to continue its growth as a private company. We believe that the acquisition represents a compelling and deliverable offer which provides Gamma Shareholders with certainty of value. We are delighted to have the support of HarbourVest and Limewood Capital as co-investors in this transaction.

Ian Wood, Epiris Partner

Source: Mobile Europe