Irish software firm Glantus has recently experienced a significant surge in its shares following a takeover approach backed by US private equity giant Accel-KKR. With a market capitalization of £8.3m, Glantus confirmed the approach from Basware, a company in which Accel-KKR has invested.
Glantus, founded in 2014 and led by CEO Maurice Healy, made its debut on the stock market in 2021 and successfully raised £10m through an oversubscribed placing. Despite reporting a loss of £5.5m in 2021, Glantus implemented cost-cutting measures and returned to profitability in the first quarter of 2023. The company faced integration challenges with an acquisition and experienced a decline in productivity in the US market.
Accel-KKR, a prominent player in the technology sector with approximately $14bn of assets under management, has until August 16 to announce a firm intention to make an offer for Glantus.
This article provides an overview of Glantus, its financial performance, and the potential for a takeover.
Company Overview
Glantus, an Irish software firm that recently received a takeover approach, has a market capitalization of £8.3m and is headed by CEO Maurice Healy.
The company was founded in 2014 and floated on the stock market in 2021, raising £10m through an oversubscribed placing. Glantus specializes in providing software solutions and services to various industries. Its customers include notable companies such as Airbus, Dole, and Paddy Power.
However, Glantus reported a loss of £5.5m in 2021. Despite this, the company returned to profitability in the first quarter of 2023. Glantus faced integration issues with an acquisition and experienced a downturn in productivity in the US market. To address these challenges, the company implemented cost-cutting measures in the final quarter of 2022.
Currently, Glantus is considered to be in an offer period under the Irish Takeover Rules, and the US private equity giant Basware has expressed interest in acquiring the company.
Financial Performance
In relation to the company’s financial performance, Glantus experienced a period of profitability in the first quarter of 2023 following a downturn in productivity in the US market and the implementation of cost-cutting measures in the final quarter of 2022.
Glantus reported a loss of £5.5 million in 2021, which was attributed to integration issues with an acquisition. However, the company was able to turn the situation around and returned to profitability in the first quarter of 2023.
This positive outcome can be attributed to the implementation of cost-cutting measures aimed at improving efficiency and reducing expenses. The downturn in productivity in the US market also played a role in the company’s financial performance, but Glantus was able to overcome this challenge and achieve profitability.
Takeover Potential
The recent market activity surrounding Glantus has generated significant attention and speculation regarding potential acquisition opportunities.
With the confirmation of a takeover approach from Basware, backed by US private equity giant Accel-KKR, Glantus has seen a surge in its share price, rising by as much as 45%.
This interest in acquiring Glantus highlights the potential value and growth prospects the Irish software firm possesses.
Accel-KKR, known for its focus on the technology sector and with approximately $14bn of assets under management, has until August 16 to announce a firm intention to make an offer for Glantus.
This development marks a significant milestone for Glantus, which reported a £5.5m loss in 2021 but returned to profitability in the first quarter of 2023 after implementing cost-cutting measures and addressing integration issues and a downturn in productivity in the US market.
