Hogg Robinson agrees terms for a takeover by American Express, signs deal to sell Fraedom to Visa
Source - SMW
Hogg Robinson Group agreed terms for a takeover by American express, and announced £141.8 million cash deal to sell software subsidiary Fraedom to Visa.
Global Business Travel - a company owned by Amex and Juweel Investors - is offering between 110p and 120p for Hogg Robinson, with the latter amount dependent on whether the Fraedom sale completes prior to the scheme court hearing date.
The company said if the proposed takeover failed, then the net cash proceeds will be deployed to strengthen the financial position of the group and could be used to invest further in and grow the group's remaining business, make payments to the Hogg Robinson UK pension scheme or potentially return capital to shareholders.
William Brindle, Chief Operating Officer of Hogg Robinson Group, said: 'Today's deal is attractive for Hogg Robinson Group's shareholders and an exciting next step for Fraedom.'
'This combination will mean that Fraedom's employees and their clients will benefit from Visa's reach and deep knowledge of the digital payments industry.'
'Under the Company's leadership, Fraedom has become a leading Software-as-a-Service technology company and we wish them further success under new ownership.'
At 9:46am: (LON:HRG) Hogg Robinson Group PLC share price was +38.25p at 116.25p