2e2 in PE-backed bid for Netstore
Article Date: Aug 12 2008IT services company 2e2, which has been owned since 2006 by private equity (PE) firm Duke Street Capital, is to acquire AIM-listed Netstore, a specialist in IT security and outsourcing. The offer price is 32p per share, valuing Netstore at £58.1 million.
The offer price represents a premium of 77.8 per cent to the closing price of 18p on the day before Netstore announced that it had received an approach from a potential acquirer. The company’s share price had risen as high as 47p in February 2005.
Paul Barry-Walsh, executive chairman of Netstore, comments, ‘I believe [this transaction] represents a satisfactory conclusion of our strategic review on behalf of shareholders, customers and staff. By bringing together 2e2 and Netstore we can secure greater market presence and capitalise on our promising market position.’
The deal will be funded by equity and debt provided by Duke Street, in addition to senior debt from banks.
Eric Priestley, non-executive chairman of 2e2, says that the acquisition creates an opportunity for the group to ‘engage more broadly’ with its customers.
