Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Cloud communication provider Imimobile said it had agreed terms on a £543 million takeover offer tabled by networking company Cisco Systems.
Under the terms of deal, Imimobile would receive 595 pence a share, representing a 47.8% premium to the closing price of 403 pence for each IMImobile share on 4 December 2020.
The deal would require shareholder and court approval, which was expected during the first quarter 2021.
Imimobile said it intended to recommend unanimously that scheme shareholders vote in favour of the deal.
'Cisco has committed to supporting our current growth plans and we look forward to pursuing these plans with the benefit of being part of one of the world's leading technology companies, the company said.
The offer announcement arrived on the heels of Imimobile's first-half results, which was in-line with its expectations.
For the six months ended 30 September, pre-tax profit rose to £3.5 million from £1.3 million, while revenue was down 9% to £75.9m.
The rise in profit was attributed to a change in the business model with one customer, which had a significant positive impact on gross profit margin, increasing to 51.3% from 42.4%.
Looking ahead, the company maintained its fiscal 2021 expectations, but upgraded performance for the following year.
'The group is well positioned to deliver an acceleration of growth and the board expects the trading performance for FY22 to be materially ahead of its previous expectations.'