Sign In Solutions makes £28.35m cash bid for SmartSpace Software

Sign In Solutions subsidiary Welcome UK Bidco has made a £28.35 million cash offer for technology business SmartSpace Software (LSE: SMRT) by way of a court-sanctioned scheme of arrangement.

SmartSpace designs and builds smart software solutions such as visitor, desk and meeting room management to help transform employee engagement.

Under the terms of the deal, SmartSpace investors will be entitled to receive £0.90 per share held which represents a premium of 169% on the closing price of £0.33 on 11 December and a premium of 125% to the three month volume weighted average share price of £0.40.

Technology-driven tailwinds

Sign In Solutions said SmartSpace is “well-positioned to capitalise on technology-driven market tailwinds” including changes in work practices and employee demand for hybrid working environments.

“SmartSpace’s products are highly complementary to our offerings and we consider [the company] to have a strong reputation within the market as evidenced by its substantial and growing customer base,” it said.

“This acquisition represents an attractive opportunity for SmartSpace to accelerate organic growth as well as pursue strategic investments, and execute its longer-term strategy without the demands of a public listing.”

SmartSpace said the deal would offer resources and support to deliver scale to the business, while providing complementary products and services to its customer base.

Unsolicited bid

The proposed takeover of SmartSpace follows an unsolicited and conditional £25 million bid received in December by Skedda Holdings Inc, priced at £0.82 per share.

At the time, Skedda stated it could provide SmartSpace with considerable financial support and technical expertise needed to “maintain its technological advantage in a rapidly developing and increasingly competitive sector”.

“We also see a strong commercial advantage for SmartSpace customers and a compelling opportunity for SmartSpace employees within an international, growing and more resilient organisation,” it said.

Sign In Solutions’ cash offer represents an improvement of nearly 10% on the Skedda deal and is expected to be received more favourably by SmartSpace shareholders.