UK-based banking and compliance software firm Lombard Risk Management has accepted a cash for shares acquisition proposal from Dutch software firm Vermeg Group.
As per the terms of the deal, for each ordinary share of Lombard Risk, its shareholders will receive 13 pence in cash, valuing the entire Lombard Risk at about £52.08m.
Lombard Risk’s board has described the offer as ‘fair and reasonable’, and has urged its shareholder to vote in favour of the transaction.
Upon completion of transaction, Lombard Risk will continue to operate under its existing executive management team within the Vermeg Group.
Commenting on the deal, Lombard Risk chairman Phillip Crawford said: “The combination of Vermeg and Lombard Risk has very strong commercial logic.
“The combined group will benefit from a range of complementary products and solutions, increased scale, a broader international presence and have the ability to accelerate growth through investment and wider routes to market.
Vermeg founder and chairman Badreddine Ouali said: “Vermeg’s acquisition of Lombard Risk will create a leading global financial software provider, with the scale and network to service an increasingly global and consolidating customer base.
“The enlarged group with its increased geographical reach will have access to greater operational resources and cross-selling opportunities across a broader and expanded client base for its enhanced portfolio of market leading solutions.”