Idox – 12% shareholder makes agreed £339.5m cash bid, shares worth 71.5p each, up 27% overnight – sell and reinvest elsewhere immediately

Mark Watson-Mitchell – 28.10.2025

This morning it has been announced that Frankel UK Bidco will acquire Idox (LON:IDOX) in an all-cash acquisition, with Idox shareholders receiving 71.5p per share.

This values Idox's entire issued share capital at approximately £339.5m, with the acquisition price representing a 26.8% premium to last night’s closing price of 56.4p and a 29.3% premium to the one-month volume-weighted average price of 55.3p.

Idox directors, who intend to recommend shareholders vote in favour of the scheme, state that revenue is expected to be slightly below prior management expectations, while profitability and net debt is anticipated to be in line with prior management expectations.

The Business

Idox develops specialist software for government and industry, with an established track record serving tightly regulated markets including local authorities, health, engineering, transport and property.

Built around the needs of the user and designed in collaboration with experts, its software delivers exceptional functionality and reliability to critical operations and embeds workflows that drive efficiency and best practice.

The £260m-capitalised Woking, Surrey-based group provides software and services for the management of local government and other organisations in the UK, the USA, the rest of Europe, and internationally.

It operates in three segments: Land, Property & Public Protection; Communities; and Assets.

The company offers specialist software and information management solutions for the government, health, engineering, transport, and property sectors; engineering document management and control solutions to asset-intensive industry sectors; and delivers software solutions.

It also provides various solutions for facilities management, regulatory services, built environment, public protection, social care and special educational needs and disabilities, funding and information services, hospital asset tracking and patient records management system, GIS and geospatial, CAFM, electoral services, sexual health management, transport network management, address data solutions, and policy and intelligence, as well as engineering, construction, and asset management solutions.

The company serves the construction, land, emergency services, utilities, and education sectors.

The Equity

There are some 460m shares in issue.

The larger holders include Octopus Investments (16.43%), Long Path Partners (12.15%), Canaccord Genuity (10.99%), Soros Fund Management (10.12%), Investec Wealth & Investment (8.54%), Rathbones Investment Management (7.92%), Kestrel Partners (4.98%), Herald Investment Management (4.81%), Lombard Odier Asset Management (4.36%), Livingbridge EP (3.79%), and Gresham House Asset Management (3.79%).

Broker’s Views

The consensus average Price Target across four brokers previously rated the shares as a Buy, suggested an aim at 84.75p a share, with the Highest at 90p, the Lowest at 81p - following this morning’s cash bid, the question is whether their opinions will change.

My View

In late May this year, when the shares were trading at 57p, I commented that:

“Regular readers will know just how much I love to see Annual Recurring Revenues (ARR) in any company’s reports, and this group has a good 62% ARR.

The group has significant financial resources to provide a solid basis for larger, accretive, and technology-enhancing acquisitions at attractive valuations.

Its shares, which peaked at 82p four years ago in August 2021, have in the last year ranged between 53p and 69p.

Now at 57p, ahead of the Interims being announced on Thursday 12^th June, I consider that holders should stick firmly to the shares, while looking to buy more upon any subsequent price falls.”

In mid-July they peaked at 68p before gradually easing back to trade in the 52p to 57p range.

My view is now that holders should take their profits and sell straight into the market and reinvest immediately to keep their funds working strategically.

(Profile 30.04.20 @ 38.50p set a Target Price of 50p*)