Source - SMW
Software and managed services provider Castleton Technology said it had accepted an offer from MRI Software that valued the company at approximately £82.8m.

Under the terms of the acquisition, each Castleton shareholder would be entitled to receive 95p a share in cash, representing a 42.9% to 66.5p per Castleton share on 14 April, the last day of business for the takeover announcement.

The offer came as the company warned on performance, with revenue expected to be no less than £23.3m, but marginally behind management expectations and adjusted earnings (EBITDA) would also be marginally behind management's expectations. 

'Amongst other risks to the business, the unknown duration and extent of the macro and micro economic consequences of the COVID-19 pandemic makes predicting future near term demand for the company's offerings difficult at this stage,' the company said. 

The Castleton directors said they considered the terms of the acquisition to be fair and reasonable and recommended shareholders vote in favour of the deal.

'A combined MRI and Castleton will be extremely well equipped to address the varying needs and evolving business models of the UK and Australian social housing sectors, with a comprehensive and flexible product portfolio,' said Patrick Ghilani, chief executive officer of MRI.

At 8:20am: (LON:CTP) Castleton Technology share price was +27.5p at 94p

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