Atlantic Global agrees to £4.9m US takeover

After almost 11 years on the Alternative Investment Market, the Cleckheaton, West Yorkshire-based company said the takeover by KeyedIn Solutions offers it the best route to growth.

The recommended offer, at 22p per share, follows almost four months of talks with prospective buyers after Atlantic put the business up for sale in September. However, it values the company at less than its £5.2m market capitalisation upon listing in 2001. Atlantic had cash of £2m in June.

KeyedIn, founded by IT entrepreneur George Klaus, pledged to grow the 18-employee business and safeguard its Yorkshire base.

“This is a great opportunity both for KeyedIn and Atlantic Global,” said KeyedIn managing director James Waterhouse.

“This move safeguards Atlantic Global’s presence in Yorkshire whilst at the same time opening up significant international opportunity for expansion.

“We believe that the ability to take this product into the US and deliver growth will be of great benefit to both current customers and the team at Atlantic Global.

“It is fantastic to see US investment in home grown British IP and even better that the business is committed to driving business growth in Yorkshire, and the development of the solution from Atlantic Global’s current base in Cleckheaton.”

He added KeyedIn only chose Atlantic after an exhaustive search.

“We evaluated many vendors in this sector and none delivered products as complete, robust and mature as those we found at Atlantic Global,” he said. “It is also a privilege to be able to attract US investment to a great British company and protect Yorkshire jobs during these difficult times.”

The takeover offers a 76 per cent premium to Atlantic’s share price the day before takeover talks were announced on September 29. Shares in the company gained 45 per cent yesterday to close up 6.5p at 21p.

Atlantic develops software to help firms manage people, projects and plans either remotely or directly on their computers. It is used by companies including HSBC, Computacenter, Aviva and Virgin Mobile.

Minneapolis-based software and consulting group KeyedIn also offers “software as a service” (SAAS), plus consulting to help companies improve efficiency and planning.

It expects to integrate Atlantic’s software in coming months, deploying it in new markets. The takeover will allow Atlantic to grow without the burden of a public listing, it added.

George Klaus said: “We are quickly building a new company with new technology, new teams and certainly new passion.”

Atlantic, founded in 1993, said despite performing well amid the tough economy, it is “small and unlikely to deliver significant additional shareholder value either organically or by bolt-on acquisition in the short or medium term”. The company added its outlook is good, and it is earning new revenues from its Middle East partnership.

Atlantic’s managing director Eugene Blaine has backed the offer with his shares, which make up 46.9 of its issued and to be issued share capital.

In total, 66.4 per cent of Atlantic’s shares have backed the offer. Mr Blaine, who will stay on with KeyedIn as chief technical officer, said: “The synergies between what Atlantic Global needed to drive the next phase in our expansion and what the KeyedIn team offered were startling.

“Bringing together our world class products and the international sales and marketing experience of the KeyedIn team made this a compelling proposition for our employees, customers and shareholders.”

As part of the deal he will get 5.6 per cent of KeyedIn Solutions.

KeyedIn said it does not plan to close or change Atlantic’s place of business or make redundancies.

Mr Klaus grew US software firm Epicor into a $980m business.

The company declined to comment beyond the offer document.

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