Private equity firm Bowmark Capital LLP revised its takeover offer for Tax Systems plc to £1.15 per share in cash from £1.10 per share.
The increased offer values the U.K.-based corporation tax software company's entire share capital at about £102.3 million on a fully diluted basis. Tax Systems said its independent directors accepted the revised offer made by Stripes BidCo Ltd., a unit of funds managed by Bowmark and its affiliates.
Technology-focused adviser and inventor MXC Capital Ltd. agreed to waive the right to exercise 2,501,886 of the warrants it holds over Tax Systems ordinary shares in exchange for a £200,000 waiver fee from Stripes BidCo. Stripes BidCo also received an irrevocable undertaking from Weiss Asset Management LP to vote its 21,037,978 Tax Systems shares in favor of the transaction.
The cash consideration and the amount required to refinance the existing facilities of Tax Systems will be funded with £70.3 million in equity financing from the Bowmark Funds and certain debt facilities.
The court and general meeting for Tax Systems shareholders to vote for and approve the increased offer are scheduled for March 15.