The board of RegTech firm Lombard Risk has accepted a £52m offer from software firm Vermeg.
The UK-based banking and compliance software saw its share price almost double as result of the acceptance, rising from 6.55p per share to 12.5p, just short of the 13p per share valuation in Vermeg’s offer.
Lombard Risk’s board said the deal is ‘fair and reasonable’ and recommended its shareholder to vote for the takeover according to regulatory announcement on the London Stock Exchange.
Philip Crawford, chairman of Lombard Risk 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.
“In reaching the decision to recommend this offer the Lombard Risk Board has considered in detail the best interests of all stakeholders and the Company as a whole. We believe that Vermeg’s all-cash offer provides shareholders with certainty of value at a level in excess of the risk adjusted prospects of Lombard Risk on a standalone basis.”
Following completion of the acquisition, Lombard Risk is expected to operate as it does today under its existing executive management team within the Vermeg Group.
Headquartered in Amsterdam, Vermeg delivers software solutions for pension & insurance, wealth & asset management, financial markets & securities services, and digital financial services.
With more than 150 clients in 20 countries, and more than 700 employees, Vermeg claims to be the European leader in insurance management solutions and a global leading finance software provider.
Founded in 1989, Lombard Risk is a provider of regulatory reporting and collateral management solutions, with the aim of enabling clients in the financial services industry to improve their approach to managing risk. It helps its clients reduce the cost and complexity of managing risk while maximising accuracy, speed and value according to its website.
The company’s clients include banking businesses, counting over 30 of the world’s ‘Top 50’ financial institutions, as well as investment firms, asset managers, hedge funds, fund administrators, insurance firms and large corporations worldwide.
Last year, Lombard Risk Management has agreed to supply its flagship regulatory reporting platform to OneSavings Bank. The platform, dubbed AgileREPORTER, will be used to gather key management information and analytics around trends, variances for audits and approvals at the challenger bank.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
