Alfa Financial Software, a UK-based provider of software for the asset finance industry, has disclosed a $773 million buyout offer from private equity firm EQT.
The offer, which is at a premium of 30% to Alfa Financial's closing share price on Thursday, has been unanimously recommended by Alfa Financial's board of directors.
EQT is a global private equity firm with over $60 billion in assets under management. The firm has a strong track record of investing in and growing businesses in the technology, healthcare, and industrial sectors.
Alfa Financial provides software for the asset finance industry, which includes companies that lease or finance equipment to businesses and consumers. The company's software helps these businesses manage their leasing and financing operations, including customer relationship management, accounting, and compliance.
Alfa Financial has been growing rapidly in recent years. The company's revenue increased by 25% in the year ended March 31, 2023. The company's growth has been driven by the increasing demand for its software from asset finance businesses around the world.
The buyout offer from EQT is a sign of the growing interest in the asset finance industry from private equity firms. The industry is attractive to private equity firms because it is growing rapidly and is fragmented, which means there are many small and medium-sized businesses that could be potential acquisition targets.
The buyout of Alfa Financial is the latest in a series of private equity deals in the asset finance industry. In recent years, private equity firms have acquired a number of asset finance businesses, including Lombard, LeasePlan, and DLL.
The buyout of Alfa Financial is expected to close in the second half of 2023.