Idox LON:IDOX, the UK-based software provider to public and infrastructure sectors, has agreed to a £339.5mn takeover by US investment firm Long Path Partners, marking the latest in a string of London-listed technology groups to be taken private amid subdued valuations and thin market liquidity.
Under the terms of the recommended all-cash offer, shareholders will receive 71.5p per share, representing a 26.8 per cent premium to Idox’s closing price of 56.4p on 27 October and a 29.3 per cent premium to its one-month average. The deal, which will be implemented through a court-sanctioned scheme of arrangement, values Idox at about 21 times its 2024 cash EBITDA and EBIT.
The board of Idox has unanimously backed the offer, describing it as “fair and reasonable” following advice from Rothschild & Co. Chairman Chris Stone said the deal “recognises the work undertaken by the board, management and employees” and “provides Idox shareholders with an attractive, certain value in cash today that reflects the quality of our business and its people.”
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Market reaction to Idox bid
Shares in Idox rose sharply in early trading following the announcement, reflecting investor relief after years of share price stagnation despite consistent operational progress. The group, listed on AIM since 2000, has grown annual revenues from £1.2mn to £87.6mn over the past two decades, supplying software used for planning, regulatory compliance, elections management and asset tracking across local authorities, engineering firms and blue-chip clients.
Long Path, which already owns about 12 per cent of Idox, said it viewed the transaction as an opportunity to back the company’s next stage of growth away from the public markets. The US fund, which manages roughly $1.6bn in assets, focuses on long-term investments in high-quality, niche businesses, typically holding stakes for five years or more.
“We are thrilled to partner with the Idox team to steer the company through its next phase of growth,” said Brian Nelson, partner and portfolio manager at Long Path. “In our view, Idox’s public listing no longer best serves the company’s long-term development prospects. Together, we will accelerate investment in product and innovation, enhance the customer experience, and strengthen Idox’s position as a leader in delivering critical digital infrastructure.”
Long Path has formed Frankel UK Bidco, a new acquisition vehicle, to complete the deal. The funds behind Bidco include Long Path Co-Investment Fund #6, Long Path Smaller Companies Fund and Long Path Opportunities Fund II. The structure will see Long Path Co-Investment Fund #6 own about 87 per cent of Bidco following completion.
The Idox board said that while it remained confident in the company’s strategy, the offer provides certainty for shareholders in a challenging market. Executing its growth plans as a listed company, it added, carried risks amid ongoing economic uncertainty and low trading volumes on AIM.
How are Idox shareholders positioned?
Bidco has already secured support for about 35 per cent of Idox’s issued share capital through a combination of Long Path’s existing holding, board undertakings and commitments from major investors including Herald Investment Trust, Rathbones and Canaccord Genuity.
The acquisition, which remains subject to shareholder and court approval, is expected to complete in the first quarter of 2026. Idox said it would issue a trading update in November, with revenues forecast to come in slightly below expectations but profits and net debt in line.
If successful, the deal will remove another established UK software group from public markets — a trend that has accelerated as overseas investors take advantage of discounted valuations in the London market.
