LONDON - The proposed acquisition of technology company Eckoh PLC by Eagle UK Bidco Limited, a subsidiary of investment management firm Bridgepoint Advisers II Limited, has cleared a significant regulatory hurdle. The transaction, announced on October 30, 2024, is subject to various conditions, including approval under the National Security and Investment Act (NSI Act). On Thursday, the Secretary of State confirmed that no further action would be taken regarding the acquisition, satisfying this particular condition.
The acquisition is to be executed through a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. This development moves the parties one step closer to finalizing the deal, which still requires the approval of Eckoh shareholders, court sanction, and the fulfillment of other related conditions.
The agreement between Bidco and Eckoh was first publicized in late October, outlining the intention for Bidco to acquire the entire issued and to be issued share capital of Eckoh. This strategic move is expected to enhance Bidco's portfolio, leveraging Eckoh's expertise in secure payment solutions and customer contact technologies.
The clearance under the NSI Act is a critical step in the acquisition process, as it addresses any concerns related to national security that might arise from such transactions. The satisfaction of the NSI Act Condition suggests that the deal does not pose any such threats and can proceed within the legal framework.
Eckoh and Bidco's directors have expressed their satisfaction with the progress of the acquisition, which is anticipated to proceed as per the previously announced timetable. The acquisition's completion is still subject to the remaining conditions outlined in the Scheme Document, which was provided to shareholders for review.
The financial advisors for Eckoh are Stifel and Singer Capital Markets, while Houlihan Lokey (NYSE:HLI) UK Limited is advising Bridgepoint and Bidco. Legal advisement is being provided by Cleary Gottlieb Steen & Hamilton LLP for Bidco and Bridgepoint, and Mills & Reeve LLP for Eckoh.
This information is based on a press release statement and is intended to inform stakeholders of the latest developments in the acquisition process. It is not an endorsement of the transaction or any entities involved.
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