PE firm Epiris to buy Gamma Communications in £1.02bn deal

(Sharecast News) - Private equity firm Epiris said on Tuesday that it has agreed to buy Gamma Communications in a £1.02bn deal. Under the terms of the acquisition, Epiris will pay 1,120p per share in cash. This is a 53% premium to the closing share price on 7 April, which was the last trading day prior to the start of an offer period.

Epiris said that through increased investments and a renewed strategic focus on innovation underpinned by greater AI adoption, it believes there are significant opportunities for Gamma to accelerate its growth, enhance its competitive position in all key markets, and unlock its long-term potential as a leading European communication services provider.

Gamma chair Martin Hellawell said: "Gamma has built a leading position in European business communications through sustained investment in its products, technology, people and customer relationships.

"The board remains confident in the company's strategy and long-term prospects. The board has nevertheless concluded that the acquisition provides Gamma shareholders with attractive and certain value in cash. Having considered the terms of the acquisition carefully, the board intends unanimously to recommend it to Gamma shareholders."

Gamma is a provider of business-critical communications technology. The company offers a broad range of business-critical communication technology solutions, combining proprietary solutions with third-party cloud platforms, its own telecoms network and a "high quality" of service.

At 1230 BST, the shares were 0.4% higher at 1,145p.

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