The offer from Assytem Technologies will see SQS shareholders receive 825p cash per share.
Companies: SQS Software Quality Systems
AIM-listed German IT company Software Quality Systems (LON: SQS) has agreed to the terms of a cash offer from Bidco, a newly created company from fellow German Group Assystem Technologies.
The offer will see shareholders receive 825p in cash for each SQS share, valuing the company at £281.3m. This represents a 56% premium to yesterday's SQS closing price of 528p and a 31% premium to the stocks highest-ever closing price of 628p in May 2015.
Naturally, the stock was racing in early trading on Friday morning, reaching 810p at the time of writing.
The Board of SQS, who hold 12% of SQS share will unanimously recommend shareholders accept the offer, while irrevocable takings and letters of intent to accept the offer have been received from 66% of shareholders.
Commenting on the Offer, Diederik Vos, Chief Executive Officer of SQS, said:
"The SQS Boards welcome the Offer and believe that it reflects an attractive valuation for SQS at a significant cash premium to the prevailing share price."
The 825p offer represents a 93% premium to the stocks price in June of this year when shares were at a 12-month low. SQS is forecast to report flat Revenue growth and 60% Net Profit Growth in FY17.
Image: the FT