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GRC International Group PLC on Wednesday accepted a £8.6 million cash bid from Bloom Equity Partners Management LLC.
The Ely, England-based provider of products and services for IT governance, risk management and compliance said the bid was worth 8 pence for every GRC share.
Bloom Equity Partners is a New York-based investment firm focused on business-to-business software companies.
Bloom Equity Partners said it had irrevocable commitments and a letter of intent supporting the bid representing 66% of GRC’s share capital.
GRC said it believes that the acquisition will provide the necessary resources and support required to scale GRC’s business, whilst also removing the significant cost and regulatory burden and constraints of being a UK publicly quoted company.
GRC said it had run a process designed to elicit expressions of interest in a purchase of the group with a view to securing the best deal for shareholders.
But this under this process they received no other indications of interest at levels deemed to be acceptable.
GRC also updated investors on trading for the year to March.
Revenue is expected to be up 4% to £15.3 million from £14.7 million a year prior.
Underlying earnings before interest, tax, depreciation and amortisation is expected to be not less than £1.0 million, up from £0.3 million a year ago.
Shares in GRC closed up 4.2% at 5.00 pence each in London on Wednesday.
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