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Gresham Technologies PLC announced Tuesday that U.S. private equity firm STG Partners LLC's attempt to acquire the U.K.-based software company for £146.7 million ($186 million) has received a significant boost with key regulatory approvals. The proposed sale to Alliance Bidco Ltd., a unit indirectly owned and managed by STG, remains on track to complete as planned. This follows the U.K. government's consent under the National Security and Investment Act.

STG Gresham Bid Approval : Regulatory Approvals Received

Gresham Technologies confirmed that the U.S. Department of Commerce's Bureau of Industry and Security has approved the proposed transaction. Additionally, Australia's Foreign Acquisitions and Takeovers Act has consented to the planned takeover. However, the potential acquisition still requires screening and investigation by Luxembourg's Ministry of Economy, according to Gresham Technologies.

Merger Plans and Shareholder Approval

STG Partners revealed in April that it plans to merge Gresham Technologies with its financial software company Alveo, acquired in January 2023. This merger aims to establish a global enterprise data management and governance platform for capital markets technology. Under the acquisition terms, Gresham shareholders will receive 163 pence per share in cash. This represents a 26.9% premium over the company's 129 pence closing share price on the London Stock Exchange when the transaction was initially disclosed in early April. In mid-May, Gresham Technologies announced that a sufficient number of shareholders had approved the sale to STG Partners at a court meeting and general meeting.

STG Gresham Bid Approval : Legal and Financial Advisors

Paul Hastings LLP is guiding STG Partners, with corporate partner Matthew Poxon leading the team, assisted by senior associate Matthew Calvert and associates Silas Raggett, Willem Jongert, and Macario Chung. Taylor Wessing LLP, led by corporate partner Robert Fenner, is advising Gresham Technologies. William Blair International Ltd., Houlihan Lokey Advisory Ltd., and Singer Capital Markets Advisory LLP are providing financial advice to Gresham Technologies on the potential deal.

Previous Acquisitions and Market Reaction

In August 2023, STG Partners inked an agreement to purchase Avid Technology Inc. for approximately $1.4 billion, financed through a combination of equity and debt. Shares in Gresham Technologies remained static at 160 pence each early Tuesday afternoon on the London Stock Exchange's FTSE techMARK All-Share index.