Eagle in £12m swoop for software firm EDP

SOFTWARE FIRM Electronic Data Processing (EDP) is to be bought by Eagle Bidco in a £12m deal.

Sheffield-based EDP has agreed terms on a recommended cash offer for the business.

EDP shareholders will be offered 91p a share, a premium of 34 per cent to the closing price of EDP’s shares on the last practicable date.

EDP is a niche supplier of computer software solutions in the UK and internationally.

Eagle Bidco is a newly incorporated company, owned and controlled by Kerridge Commercial Systems Group (KCS Group).

The KCS Group provides specialist software, services and support to trade, wholesale, manufacturing, field service and distribution customers.

Ian Bendelow, CEO of KCSG, said: “The acquisition of EDP is a great opportunity to accelerate our strategy. It brings us greater presence in the UK and an increased platform for growth in our traditional markets. EDP is a high quality business with customer offerings that are highly complementary to the KCS Group and we very much look forward to welcoming its employees into the enlarged group.”

Sir Michael Heller, non-executive chairman of EDP, said: “The EDP and KCSG businesses have been good competitors for many years, addressing the needs of customers in the same vertical markets.

“Accordingly, the EDP directors believe that the KCS Group’s activities provide a strong fit with those of EDP and that the KCS Group is an appropriate partner to continue the development of the EDP business.

“The additional resources that the KCS Group will bring will mean that it is well positioned and resourced to support EDP and the future growth of the EDP business.”