IQGeo to be taken private by KKR in £316m deal, shares surge

14th May 2024 12:26

(Sharecast News) - Shares of IQGeo Group surged on Tuesday as it agreed to be taken over by private equity firm KKR in a £316m deal.

Under the terms of the deal, Geologist Bidco Limited - owned by KKR - will pay 480p per share in cash. This is a 19% premium to the closing share price on Monday.

IQGeo chair Paul Taylor said: "KKR's proposed offer underscores IQGeo's highly successful cloud-based software and services, and represents an attractive valuation and an opportunity for shareholders to receive certainty through cash consideration, not only for value created in recent years but also the future platform value of IQGeo.

"The proposed acquisition will provide IQGeo with the ownership structure and investment required to unlock its full potential."

IQGeo is a provider of geospatial software solutions to telecommunication and utility operators.

Rami Bibi, managing director and head of EMEA for KKR Global Impact, said: "In our view, IQGeo is unique in its support for continued global efforts addressing the digital divide and transforming grid infrastructure, which is aligned with KKR's strong focus of investing behind grid electrification for net-zero goals.

"To capitalise on the global growth potential ahead, increased investment and an acceleration of IQGeo's strategy are imperative, and private ownership under KKR will help facilitate this."

At 1240 BST, the shares were up 14.6% at 464.20p.