(Reuters) -London-based private equity firm Apax Partners has agreed to acquire Guernsey-based investment company Apax Global Alpha (AGA) for about 916.5 million euros ($1.07 billion), the companies said on Monday.
Shares of the London-listed firm were up as much as 18% at 163 pence.
The bid made through a company controlled by Apax Partners, called Janus Bidco, is for 1.90 euros (1.65 pounds) per AGA share, representing a nearly 19% premium to the stock’s closing price on Friday.
Part of the funding for the cash offer will come from equity financing provided by Ares Funds, which will subscribe to New Fund A2 Shares to help cover the payment to AGA shareholders.
AGA, which makes private equity investments in Apax Funds, has a portfolio of primarily debt investments, derived from the insights gained via Apax’s private equity activities.
“Apax believes that AGA’s portfolio of private equity funds provides access to a range of high-quality companies, and that AGA offers a compelling long-term investment opportunity,” it said in a statement.
AGA’s 1.1 billion-euro portfolio spans 11 private equity funds across tech, services, and internet or consumer sectors.
($1 = 0.8576 euros)(1 British pound = 1.1544 euros)
(Reporting by Aatrayee Chatterjee and Shanima A in Bengaluru; additional reporting by Anousha Sakoui; Editing by Sahal Muhammed and Shailesh Kuber)
