London-based buyout firm Bridgepoint is in the final stages of acquiring specialist consulting firm Alpha Financial Markets Consulting (Alpha FMC), which is listed on the FTSE-250. According to sources, the two companies are nearing an agreement on a deal worth approximately £550m. This potential acquisition, with an expected announcement before the Takeover Panel deadline on Thursday, could be worth around 500p per share.
This development comes after both Bridgepoint and private equity group Cinven expressed interest in acquiring Alpha FMC. The company, which competes with the consulting arms of the big four accountancy firms, as well as other major consulting firms such as Accenture and IBM, has a global presence with over 900 consultants.
In recent months, London-listed companies have been attracting interest from private equity firms, and Alpha FMC is the latest in this trend. As of Wednesday, the company had a market valuation of approximately £440m, with its shares trading at around 391p. However, over the past year, its shares have seen a decline of about 20%.
Both Alpha FMC and Bridgepoint have declined to comment on the potential acquisition, but an official announcement is expected before the Takeover Panel deadline. This development comes amidst news of UK inflation dropping to the Bank of England’s 2% target and a possible “criminal conspiracy” surrounding the Post Office scandal. Additionally, Nvidia recently became the world’s most valuable company.
This potential deal between Bridgepoint and Alpha FMC highlights the growing interest in London-listed firms from private equity groups and could have a significant impact on the financial services consulting industry.