JBA agrees takeover

By THIS IS MONEY
Updated:

 

Troubled software group JBA Holdings has agreed to a takeover by Canadian rival Geac Computer Corporation in a deal worth £92.5 million, it was revealed today.

Geac's offer of 250p in cash for each JBA share is being made through its wholly-owned subsidiary Geac UK, which was set up specifically to make the bid.

The offer represents a premium of around 71% above the 146p closing price of JBA shares on July 13 - the day before JBA confirmed it was in talks which could lead to an offer.

Birmingham-based JBA racked up losses before tax and exceptional items of £14.5 million for the year to December 31.

The deficits came on the back of a fall in software licence sales and increasing pricing competition.

Earlier this month, JBA announced an internal restructure so it could focus on exploiting its leading positions in supplying software to the clothing, footwear, food, drink, automotive components and electronics sectors.

JBA chief executive Ken Briddon said the takeover by Geac would benefit the UK group 'significantly'.

The timing of JBA's recovery was 'difficult to predict' and may cost more than the company could afford, he said.

'Against this background, the board of JBA believes that JBA, by becoming part of the larger Geac group, will have the additional financial resources and stability to allow the JBA group to implement its strategy,' Mr Briddon said.

Geac president and chief executive Douglas Bergeron said the Canadian group was 'enthusiastic' about the opportunities for JBA.

Geac has received irrevocable undertakings to accept its offer from the JBA directors who hold shares representing about 11.6% of the British company.

The Canadian group also owns stocks representing about 2.7% of JBA's share capital.

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