Equals Group Extends Takeover Deadline amid London Fintech Exodus

Wednesday, 24/01/2024 | 10:43 GMT by Tareq Sikder

The takeover deadline for Equals Group and Madison Dearborn is extended until 5 pm on February 21.

Last year, the firm expanded its portfolio by acquiring Oonex S.A. and Roqqett Limited.

Ian Strafford-Taylor, the Chief Executive Officer of Equals Group

The London-listed fintech Equals Group has prolonged the 'put-up-or-shut-up' deadline for a potential takeover, adding to the trend of firms departing London's markets. The AIM-listed payments firm initiated a 'strategic review' in November and entered into talks with the US-based private equity group Madison Dearborn Partners regarding a potential sale.

Madison Dearborn's Interest Sparks Extension in Equals Group Talks

In a statement today, Equals Group announced an extension of discussions with Madison Dearborn Partners as it considers a move back into private ownership. The board of Equals has requested an extension of the 'put-up-or-shut-up' deadline from the Panel on Takeovers and Mergers, giving the two entities until 5 pm on February 21 to reach a potential deal.

Madison Dearborn's interest in Equals Group aligns with a series of takeover bids targeting London firms in the latter half of the previous year. The trend saw 40 companies either going private or agreeing to takeover bids, with analysts anticipating another wave of take-privates as markets stabilize.

Charles Hall, the Head of Research at Peel Hunt, highlighted the relentless pace of de-equitisation driven by low UK valuations, making it an attractive landscape for acquirers. He noted the dearth of IPO activity and warned of continued trends unless prompt action is taken.

Equals Group Achieves Strong Revenue Growth of 37% in 2023

Earlier, Finance Magnates reported that Equals Group Plc released its pre-close trading update for the financial year ending December 31, 2023, reporting unaudited revenues of £95.5 million, an increase of 37% from the previous year. The growth was fueled by the Solutions business and B2B products, resulting in a Y-o-Y increase of 36.4% in revenues per working day.

The company additionally saw elevated Adjusted EBITDA and held approximately £18.3 million in cash. Despite an ongoing strategic review, the CEO, Ian Strafford-Taylor, expressed confidence in 2024 plans. Equals Group anticipates 2023 results to align with market expectations. Acquiring Oonex S.A. in July 2023 and Roqqett Limited in December 2023, the company plans to report audited full-year results in April 2024.