The board of listed IT services group Calyx has agreed to a management buyout led by chief executive Maurice Healy which values the company at £70.2 million (€103.6 million).
The acquisition is being made through a vehicle called Stornoway which includes Mr Healy and other senior Calyx management, backed by private equity group Alchemy Partners. The offer price is £1.01. Calyx shares were trading at 81.5p when Mr Healy's bid broke cover and exchanged hands for 93p this week.
If the deal is accepted by shareholders, Calyx will delist from London's Alternative Investment Market (AIM) and Dublin's IEX. Mr Healy will hold 30.8 per cent of Clayfox Gilttop, the ultimate owner of Stornoway. Alchemy Investment Plan will control another 59.2 per cent, with the remainder of the shares being held by Calyx senior management.
These include chief financial officer Peter Jenkins; Gerard Coakley, managing director of the Irish business; Andrew Mills, managing director of Calyx UK, and Jack Cunnane, group business improvement director.
Davy Corporate Finance, which acted for Calyx, had been seeking alternative bids in recent weeks but none emerged. Stornoway's acquisition document notes that an alternative proposal may still emerge. It also says that Calyx's growth by acquisition is likely to be accelerated given the access to "equity and debt capital" provided by Alchemy.
Calyx was formed in 2001 when Mr Healy led a management buyout of electronic payments group Alphyra's Irish voice and data businesses. Since then the company has expanded rapidly in Ireland and Britain. It has completed a series of acquisitions, including the purchase of two divisions of the Matrix group in Britain last June for approximately €59 million.
Calyx shares floated in March 2005 on AIM. It reported revenues of €38.4 million to the end of 2005 which increased to €88.5 million in the 12 months to the end of 2006. Group-operating profit before goodwill, amortisation and exceptional items, increased from €3.8 million to €9.4 million. The company employs approximately 500 people in Britain and Ireland.
