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Alterian Accepts Revised Offer from SDL
Translation software group SDL is to acquire social media monitoring firm Alterian after the latter's board today unanimously recommended approval of a sweetened offer. The all-cash price of 110p a share values Alterian at £68.4m.
SDL initially bid for the company in late October, with a price of 80p a share described by Alterian's board as 'undervaluing the company's position and its future prospects' - and by analysts as 'opportunistic' - but won its interest with a revised offer of 110p on 10th November. The new price represents a 73% premium over Alterian's closing price of 63.5p on October 23, the day before the first bid.
Analysts expect SDL to fund the deal from cash reserves of £75m.
SDL says there is 'a strong strategic fit between the two companies' with potential for Alterian to expand its customer base via the group and cash in on SDL's international expertise.
Alterian yesterday reported a 6% drop in six-monthly revenue and a huge impairment charge leading to an operating loss of £18.6m. It had already announced a string of cuts targetting £10.6m in savings and including a staff reduction from over 400 people to around 260.
Web site: www.alterian.com .
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