Halifax-based SSP yesterday announced it is set to leave the stock market after agreeing to a buyout by San Francisco private equity firm Hellman & Friedman.

The deal will see a newly-formed company, H&F Bidco, acquire the entire issued share capital of SSP for £161.6m.

Shareholders will receive 190p per share, a premium of about 12 per cent on Tuesday's share price, and 47 per cent on the group's average share price. SSP, which provides IT solutions to the global insurance industry, has more than 41,000 users in more than 50 countries. It employs more than 800 people at its Halifax offices. SSP floated on the Alternative Investment Market (AIM) in October 2006.

Martin Jenkins, head of corporate finance at Deloitte in Leeds, which advised SSP on the deal, said he expects more public-to-private deals in Yorkshire during the rest of the year.

He said: "There's no doubt that this region has established itself as a very important part of the private equity market, and I think that will continue. The region is performing very well on the bigger ticket deal market and punching above its weight. Deals like SSP and Foodvest demonstrate the strength that Yorkshire enjoys from having a broadly based economy. We are not overly dependent on one sector."

The deal yesterday follows the buyout of seafood firm Young's and its sister companies for £1.1bn earlier this week. UK private equity firm Lion Capital agreed with CapVest to take over its Foodvest arm.

But Mr Jenkins said while big deals in Yorkshire are performing well, deals in the £25m to £100m range have slowed as funds stick to more robust sectors. "This year's figures are being highly influenced by large transactions of £100m plus.

"It's noticeable and a little concerning that the mid market has noticeably slowed down in the last year. It demonstrates that Yorkshire is not immune from the economic slowdown."

SSP reported profit before tax and exceptional items of £10.3m for the year ended March 31, up from £6.6m last year.

It also reported revenues up to £64.4m from £38.6 the previous year. Net debt was up at £40m from £13.5m.

The buyout was funded by Barclays Bank, HSBC, Lloyds TSB and The Royal Bank of Scotland.

It was backed unanimously by SSP's independent directors and has the support of shareholders representing about 65 per cent of SSP's issued capital.

SSP was advised by a corporate team from law firm Addleshaw Goddard's Leeds office, and Hammonds LLP. SSP's management team will stay on, but the independent directors will leave.

Executive chairman of SSP David Rasche said: "Many of our shareholders invested in the initial public offering at 98 pence per share and will now realise a premium of approximately 94 per cent in cash over some two years."

Mr Rasche, who will receive a windfall of £9.52m from his 5m shares, said the buyout did not come as a surprise as the fund has been following the firm closely for three years.

"We weren't seeking a sale, it sought us. There's been some comment that it shows maybe the stock market does not value mid-market companies quite as well as it should do," he said.

"If private equity values you significantly higher you have got to do what's right for your shareholders. We are a very solid business with very high recurring and visible revenues."