ServicePower board recommends Diversis cash offer

Diversis and ServicePower jointly announced on Thursday the terms of a recommended cash offer to be made by Diversis for the entire issued and to be issued share capital of ServicePower by way of a contractual offer under the Takeover Code.

Under the terms of the offer, ServicePower shareholders would be entitled to receive 6p in cash for each ServicePower Share held.

The offer price represented a premium of around 129%. to the closing price per ServicePower share of 2.625p on 21 November.

It also represented a premium of 110% to the three month average closing price per ServicePower Share of approximately 2.85p.

The offer valued the entire issued share capital of ServicePower at approximately £13.65m.

ServicePower’s board of directors, as advised by finnCap, said they considered the terms of the offer to be fair and reasonable, and so unanimously agreed to recommend that shareholders accept the offer.

“As the business and our clients' needs have continued to evolve, the board has given much thought about how best it advances the business,” said ServicePower chairman Hugh Fitzwilliam-Lay.

“I am confident that this transaction will allow ServicePower's business to grow and better serve both its customers and employees.”

Ron Nayot, a director of Diversis said his company was excited about the acquisition of ServicePower and to partner with the current management team to build on its software suite.

“Going forward, we plan to invest further in the development of all areas of the software suite to deliver the best possible experience for customers.”