Bridgepoint announced Wednesday that it has agreed to buy U.K.-based data security company Eckoh PLC for £169.3 million ($220 million) through its subsidiary, Eagle UK Bidco Ltd., a move that allows the private equity firm to tap into the expanding global digital security sector.

Bridgepoint’s Entry into Data Security with Eckoh Acquisition

The acquisition offer values Eckoh at roughly £161.8 million, with Bridgepoint's Eagle UK Bidco agreeing to pay 54 pence in cash per share. This price represents an 11.3% premium over Eckoh’s August 21 closing price of 48.5 pence, the day before news of the offer broke. Bridgepoint anticipates finalizing the acquisition in the first quarter of 2025.

Alan Payne, Bridgepoint Development Capital partner and deputy head, highlighted Eckoh’s leading position in a specialized software field. "There is a growing need for businesses to establish secure customer payment solutions as new contact channels, payment methods, and compliance regulations emerge," Payne said.

Bridgepoint to buy Eckoh : Legal Guidance and Approval Process

Bridgepoint is represented by Cleary Gottlieb Steen & Hamilton LLP, with a legal team led by partners Ian Shawyer and Nick Rumsby and counsel Joanna Roberts. Mills & Reeve LLP serves as legal adviser for Eckoh.

The deal is structured as a court-sanctioned scheme of arrangement under the Companies Act 2006. To proceed, it requires regulatory approval, including U.K. government review under the National Security and Investment Act 2021 and clearance from the Competition and Markets Authority. It also hinges on approval from 75% of Eckoh’s shareholders, who will vote at a yet-unscheduled general meeting.

Eckoh’s Strategic Shift with Bridgepoint’s Backing

Eckoh’s board has endorsed the offer, deeming the terms favorable. Chief Executive Nik Philpot explained in a statement to the London Stock Exchange that the acquisition aligns with Eckoh’s long-term goals, especially as the company seeks to expand in North America. “Our team has been making excellent progress where we see the biggest opportunity for growth … but we need to accelerate investment in our product road map and our go-to-market strategy,” Philpot stated.

Eckoh, which specializes in securing customer payment data in call centers, will seek approval to delist from the Alternative Investment Market (AIM) of the London Stock Exchange and re-register as a private entity if the deal clears all regulatory and shareholder hurdles.

Bridgepoint to buy Eckoh : Market Potential in Big Data Security

The acquisition aligns with forecasts of substantial growth in the global data security market. Straits Research estimates that the sector, valued at $33.7 billion in 2023, will expand to $152.2 billion by 2032, driven by increasing data protection requirements and anticipated to grow at an 18.2% compound annual growth rate.