Add thelocalreport.in As A Trusted Source
British software company Idox has agreed to be bought by a US investor, in a move the company says will lead to job cuts.
The owners of the Woking-based technology business have agreed to be bought by Long Path, the group’s second-largest shareholder, for £339.5 million.
On Tuesday, Idox said initiatives are likely to be taken to improve operations after the deal is completed, which is expected to reduce the group’s headcount.
It said this is expected to result in a reduction of approximately 5% to the company’s workforce, which currently employs approximately 680 people.
The business also said that becoming a private company would impact a “limited number of roles” in the business and that some “corporate functions” required for publicly listed businesses would no longer be required.
Any job cuts are likely to occur until two years after the deal closes, Idox said.
New York-based Long Path said it would pay 71.5p per share in the deal, representing about a 26.8% premium compared to its share price at the close of trading on Monday.
Long Path, which currently owns 12% of the business, said it believed the firm would “benefit from private ownership”, which would help it attract investors into its product and technology.
Chris Stone, chairman of Idox, said: “This offer recognizes the work done by the board, management and employees of the Idox business and provides Idox shareholders with an attractive, fixed price in cash today that reflects the quality of our business and its people.”