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Corporate lawyers advise Servelec on recommended cash offer

Walker Morris reinforces expertise in the technology sector

Specialist corporate lawyers at Walker Morris are advising Servelec Group plc, the UK-headquartered technology group, on a recommended cash offer from Scarlet Bidco to acquire Servelec’s entire issued and to be issued share capital.  The deal values the Servelec Group at approximately £224 million and is being effected by way of a scheme of arrangement.

Founded in 1977, Servelec provides software, hardware and services to the healthcare, social care and education, oil and gas, energy and utilities sectors and has significant intellectual property.

Scarlet Bidco is a newly incorporated company which is indirectly held by funds managed Montagu, one of Europe’s longest standing private equity firms.

In 2013, Servelec completed its IPO, listing on the Official List of the UK Listing Authority admitting to trading on the Main Market of the London Stock Exchange with a value of £122 million. Since then, the Group has pursued a combined organic and acquisitive growth strategy, completing four acquisitions.

Commenting on the Offer, Richard Last, Chairman and Non-Executive Director of Servelec, said:

“Servelec Group has made good progress in the four years since its IPO, growing both organically and through acquisition. The offer from Montagu represents an attractive and certain value, in cash, today for our shareholders. Investors who invested at the IPO will have achieved a total return of approximately 185% on that investment, including dividends. We are pleased that Montagu will continue to support the ongoing organic and acquisitive growth strategy in place. I would like to take this opportunity to thank all the employees at Servelec Group for all their hard work and support.”

The Walker Morris team comprises: Richard Naish and Luke Riley (from Corporate) and Nicola Parkinson (from Tax/Share Incentives).

Richard Naish, Corporate partner who led the Walker Morris team, said:

“As a long-standing client of the firm we’ve been delighted to advise them on a number of major milestones in Servelec’s history, including its IPO on the Main Market and the four acquisitions since then.  We have been delighted to see the business grow from strength to strength.  The proposed takeover by Scarlet Bidco will provide Servelec with the investment and funding to capitalise on future growth opportunities.”

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