FD Technologies shares surge on US takeover offer
Shares in Newry-based tech firm FD Technologies rocketed on Wednesday as its odds of a US takeover increased.
The AIM-listed company’s board of directors issued a statement on Wednesday addressing offers of a takeover from US private equity firm TA Associates.
The most recent proposal from TA related to “a possible cash offer” of 2,450p per share. This would value the business at around £550m, and significantly ahead of the firm’s closing price of 1,930p on Tuesday.
The board said “should a firm offer be made on the same financial terms” it would be “minded to recommend” the deal to shareholders.
Shares were up 23 per cent to 2,380p during mid-day trading on Wednesday.
FD could join a growing AIM exodus
Brian Conlon founded FD Technologies in 1996 – initially known as First Derivatives. The Conlon family maintain a 10 per cent stake in the company.
The firm employs around 3,000 people across its global operations.
The company specialises in high-performance analytics and real-time data processing.
In October 2024, FD Technologies sold its First Derivative consulting arm to US software company EPAM Systems for £230m.
The move was a part of restructuring process to focus more intensively on the growth potential of its KX data platform and its growth potential.
The company also merged its MRP marketing technology division with US firm CONTENTgine, but reduced a 49 per cent stake in the new entity.
Should the firm ditch its AIM-listing following a potential takeover, it would join a growing exodus that left the market at its lowest level since 2001.
This included Synairgen, a respiratory drug company spun off from the University of Southampton, delisting in 2024 following a shareholder vote. The company cited the disadvantages of being listed on AIM, including high costs and limited access to capital, as reasons for the decision.
Brighton Pier Group, the owner of the iconic Brighton Palace Pier, also delisted in its transition into a private company last year.
TA Associates has until 5pm on June 4 to either announce a firm intention to make an offer or to declare that it will not pursue the acquisition. The deadline may be extended with the consent of the Takeover Panel.
TA Associates also maintains the right to alter its offer on less favorable terms if certain conditions are met.