Ashtead Technology has agreed to a £505m takeover by New York-based private equity firm Ember Infrastructure Management, making it the latest London-listed company to be acquired at a significant premium.
Ember Infrastructure has offered 615p per share in cash for the underwater technology firm, which trades on the Alternative Investment Market.
The offer represents an 80.9 per cent premium on Ashtead’s closing share price of 340p on 22 September, a staggering return for shareholders who back the deal.
Ashtead’s board has described the acquisition as “fair and reasonable” and a “compelling opportunity” for shareholders, with board members pledging to vote their own shares in favour.
The deal is anticipated to be completed in the fourth quarter of 2026 or early next year, subject to shareholder approval.
Bill Shannon, chairman of Ashtead Technology, said “In recent years, Ashtead Technology has demonstrated resilience despite a challenging market and geopolitical backdrop.”
Shannon added: “The board believes that the acquisition provides shareholders with a compelling opportunity to realise significant value today when compared with the risk-adjusted return that would be expected to be delivered through the standalone strategy.”
Ember, whose portfolio consists of mid-market infrastructure companies, said it would support Ashtead by “providing long-term private capital” to invest in its fleet, technology and people.
Ashtead’s share price had already rocketed 71.6 per cent since the start of the year before the takeover announcement delivered an additional surge.
The deal adds to a growing list of London-listed firms being snapped up at soaring premiums, with Ember’s 80.9 per cent offer just behind the 81 per cent premium paid when Apollo acquired EasyJet for £5.7bn.
Engineering group Rotork was taken off the mid-cap index earlier this year for £4.1bn at a 73 per cent premium, further illustrating the trend of overseas buyers targeting UK firms.
Large-cap stalwarts have also attracted attention, with insurer Beazley poached by Zurich for £8.1bn at a 59.8 per cent premium and Nuveen snapping up Schroders for £9.9bn at a 34 per cent premium.
The wave of acquisitions, combined with an ongoing IPO drought, has raised serious concerns among market observers that the London Stock Exchange is steadily shrinking in size and relevance.
Some relief arrived recently when African mobile payments company Airtel listed in London at a £5.3bn valuation, offering the capital market a much-needed boost.