Blue Prism takeover facing opposition from shareholder and local MP

Blue Prism takeover facing stiff opposition after leading shareholder and local MP speak out against deal

Texas-based Vista Equity Partners is buying UK software group Blue Prism for £1.1bn

A US private equity shark’s takeover of a British software group faces stiff opposition after a leading shareholder and local MP spoke out against the deal.

Texas-based Vista Equity Partners is buying Blue Prism for £1.1billion with co-founders Alastair Bathgate and David Moss and chief executive Jason Kingdon set to share a pay pot of more than £130million.

But the takeover is likely to result in heavy job losses at the firm’s headquarters in Warrington, leading to accusations that the deal is ‘private equity at its worst’.

Top ten shareholder Hawk Ridge Capital Management slammed the plans, saying that the £11.25 per share offer was too cheap, and it will not support the transaction.

David Brown, portfolio manager at Hawk Ridge, which owns 3.5 per cent of Blue Prism, said: ‘It is a very low price based on our analysis of comparable companies and transactions.’

Charlotte Nichols, Labour MP for Warrington North, said: ‘This windfall for the previous and current bosses of Blue Prism is a bitter wind for their employees.

‘We want to see growth and loyalty for good, skilled, well-paying jobs, not lose them as the financial toys of American asset strippers.’