British law firm DWF Group Plc is in talks to be acquired by Inflexion in a buyout valued at about £342 million ($438 million), amid a tentative return of take-private deals.
(Bloomberg) — British law firm DWF Group Plc is in talks to be acquired by Inflexion in a buyout valued at about £342 million ($438 million), amid a tentative return of take-private deals.
The private equity firm is discussing a cash offer of 100 pence a share for London-listed DWF, including a special dividend, the law firm said in a statement Monday that confirmed an earlier Bloomberg News report.
Shares in DWF rose as much as 40% on Monday for their biggest intraday gain on record. The stock was up 33% at 10:58 a.m. in London, giving the company a market value of £298 million.
The proposal includes 97 pence per share in cash, plus a special dividend of 3 pence per share conditional on the deal going through. DWF said that should Inflexion proceed with a firm offer at this price, it would be minded to unanimously recommend the bid to its shareholders.
There can be no certainty Inflexion will proceed with an offer, according to DWF, which is being advised by Fenchurch Advisory Partners and Stifel Financial Corp. A representative for Inflexion declined to comment.
Deal activity involving law firms has been heating up. Allen & Overy said in May it’s planning to merge with Shearman & Sterling to create one of the world’s largest legal firms with $3.4 billion in revenue.
DWF provides legal and business services to companies across eight sectors including financial, transport and energy and natural resources. The company has offices across Europe, North America, the Middle East and Asia Pacific. Its net revenue increased 3.4% in the six months through October — the company’s fiscal first half — to about £179 million.
Inflexion manages around £8 billion and specializes in mid-market deals, investing £10 million to £400 million per transaction. It’s backed more than 100 companies since its inception in 1999 and its current portfolio includes Chambers & Partners, an information services provider for the legal sector, and risk management firm PMC Treasury.
Buyout firms have struggled to complete larger takeovers of public companies this year, amid challenges in financing such transactions and price disagreements with selling parties. But the last six weeks have brought signs of recovery, with EQT AB agreeing to buy veterinary drugmaker Dechra Pharmaceuticals Plc for £4.46 billion and Brookfield Asset Management Ltd. inking a deal for payments firm Network International Holdings Plc.
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