Monday, October 24, 2011

News: Parseq accept Cassis bid


Parseq, which specialises in mobile and online banking software and technology-led outsourcing services, is to accept a bid for the company led by their CEO, Rami Cassis.

The MBO comes a year after a successful reverse takeover by Rami Cassis and Rotherham-based BPO provider, Documetric.

After an initial bid of 7.5p per share was turned down, the Parseq board reached an agreement on the terms of a improved cash offer of 9p per share. The offer is conditional on Cassis increasing his shareholding from 35.53% to over 50% and values the company at around £33.8m.

The bid from Rami Cassis is together with Nova Capital and funds managed by HarbourVest Partners, LLC through a newly incorporated entity called Bidco.

Rami Cassis said: "We believe that Parseq is a business with sound fundamentals and interesting potential. We also believe, however, that this is best unlocked in the context of a focused, private environment with certainty of sizeable funding and a long term outlook.

"In addition, I'm excited to be working with the Nova team who bring a wealth of experience which will undoubtedly enhance employee and shareholder value in the years to come."

The MBO bid came after growth was stunted when the services division of Parseq was impacted by market conditions and delays in signing contracts. The intention is to delist Parseq and re-register it as a private company in order to achieve substantial investment to fully develop its prospects for growth and expansion.

Richard Last, chairman of Parseq, said: "The Independent Board of Parseq announces that it has unanimously recommended the Offer as we believe it recognises the value within the business. As a private company with a strong parent, Parseq will benefit from greater access to funding which will better enable the company to maintain its leading position in the mobile banking software arena and to capitalise on opportunities on a global basis."

Bidco has stated that it has no current intention to redeploy any of the fixed assets of Parseq and has no current intention to change the location of the Parseq Group's operational places of business.

Cassis founded Documetric in 2007 through a management buy-out of the data services division of Atos Origin, a leading European IT outsourcer. The Rotherham facility at Hellaby processes up to 30,000 envelopes every day and utilises a range of cheque processing and scanning machines to process payments. They are one of the ten largest BACS Bureaux in the UK and process 47 million transactions a year.

For the year ended December 2010, Paresq's revenue was £16.45m, an increase of 62% on 2009 (£10.17m) and a world away from a modest £1.8m in annual revenues in 2007.

Parseq website



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