Inspired latest to attract private equity takeover bid
Energy and sustainability consultancy Inspired has agreed to a £183.6m all-cash takeover from US private equity firm HGGC, marking a sharp turn in the firm’s M&A saga after previously rejecting a rival bid from Regent Acquisitions.
HGGC will make the acquisition through a newly formed vehicle, Intrepid Bidco Limited, offering 81p per share – a 34.4 per cent premium to the firm’s six-month average and well above Regent’s rejected 68.5p offer made in April.
Inspired, which serves over 3,500 commercial customers, provides advisory and software services across energy procurement, net zero strategy and ESG reporting.
Its board, led by chairman Richard Logan, has unanimously recommended the deal, describing it as “clearly superior”, and offering “attractive value” to shareholders in a volatile market.
He added: “The Board of Inspired believes that HGGC’s Offer represents a certain outcome for shareholders at an attractive value, particularly in light of the volatile market environment, and is pleased to see the strong support for the Offer from Inspired’s shareholders.”
The board has also withdrawn its recommendation for a previously proposed final dividend, paving the way for the transaction.
The move comes with the backing of Gresham House, Inspired’s largest shareholder with just under 30 per cent of the firm.
Inspired’s takeover battle
Gresham had rejected Regent’s offer in April and is now supporting the HGGC bid through irrevocable undertakings covering both equity and dilutive securities.
In total, Bidco has secured backing for 40.2 per cent of Inspired’s issued shares, plus agreements to acquire key warrants and loan notes, giving it a path to majority control.
HGGC said Inspired’s strong position in a structurally changing energy sector made it an ideal platform for growth.
“We believe in management’s long-term vision for the company, and we believe that a combination of targeted investment, capability-building, and long-term focus will be required to achieve that vision”, the firm told the market on Thursday.
Subject to shareholder and regulatory approvals, the deal is expected to complete in this year’s third quarter. If Bidco acquires more than 90 per cent of Inspired, it will move to take the firm private and cancel its AIM listing.
The bid marks a dramatic turn from just a month ago, when Inspired rejected Regent’s £109m offer, dismissing it as “opportunistic” and undervaluing the group.
The deal underscored the intensifying private equity appetite in UK-listed services firms seen as undervalued or under-capitalised in public markets.