01/02/2012 Author: David Beattie

BREAKING NEWS - UPDATE: GlobeOp set to be acquired by TPG Partners in $800m deal

(Follows breaking news alert, adds details throughout)

GlobeOp Financial Services, one of the top ten global hedge fund administrators, has agreed the terms of a cash offer by Geo3, a newly-established partnership indirectly owned by private investment firm TPG Partners, to acquire its entire share capital in a deal that values the company at £508m ($800.5m), the company announced Wednesday.

Under the terms of the offer, GlobeOp will be entitled to receive 435 pence (635 US cents) in cash for each ordinary share held, with the offer price representing a premium of approximately 48.5% to the closing price of GlobalOp’s ordinary shares on 5 January 2012 – the last business day prior to its announcement that it was in discussions with TPG.

It is also a 59.3% premium to the volume weighted average closing price per ordinary share of 273 pence for the three months ended 5 January 5 2012. The deal values GlobeOp on the basis of 116.8 million shares.
In a statement GlobeOp said its independent directors, advised by Evercore Partners, consider the offer to be fair and reasonable.

GlobeOp chairman Ed Nicoll, said of the offer: “We welcome TPG’s offer, which is the result of an extensive and competitive process over the last few months. We commenced the strategic review to ascertain whether there was an opportunity to create value for shareholders and we believe that this offer achieves that aim.”

“The independent directors believe that the offer represents good value and an attractive balance between the future opportunities and risks facing the business and have therefore decided to recommend TPG’s offer to shareholders,” he added.

Meanwhile TPG partner Bryan Taylor said of the development: “TPG is delighted to announce today’s formal offer for GlobeOp. GlobeOp is a strong global financial services company with a high quality offering and a robust business model, which we plan to invest in and grow.”

Concluding, he said: “TPG is committed to enhancing GlobeOp’s position as a leading independent operator and to working with its customers, employees and management to continue the success of the company.”