- London Bridge shares soar on 95p/share cash offer by US group

US-listed business intelligence company Fair Isaac Corp has made a recommended offer for London Bridge Software PLC of 95 pence cash per share, valuing the company at approximately 166.2 mln usd, the companies said today.

The offer, made through Fair Isaac's UK unit, represents a premium of approximately 54 pct over the closing middle market price of 61.5 pence per London Bridge share on April 23.

Fair Isaac said it has received irrevocable undertakings to accept the offer from the directors of London Bridge in respect of 79.0 mln London Bridge shares, or 46.2 pct of London Bridge's existing issued ordinary share capital.

'The acquisition of London Bridge fits clearly within Fair Isaac's strategy of adding other mission-critical vertical applications to its existing portfolio of analytics applications and decision management solutions,' said Tom Grudnowski, CEO of Fair Isaac.

The directors of London Bridge, a UK-listed provider of business software and e-commerce solutions, said they have sought to 'maximise shareholder value with the offer,' following what was an unsolicited approach.

Fair Isaac said the acquisition of London Bridge will reinforce its position as a 'leading' provider of management solutions to the financial services industry and will enhance its ability to serve institutions in the UK, continental Europe and Asia.

'It will provide access to a broad suite of credit management solutions encompassing the entire origination through to collections and recoveries cycle, and improved support in geographies around the world,' the company said.

Fair Isaac said there may be opportunities to cross-market the companies' products.

London Bridge was founded in 1987 by the current chairman Gordon Crawford and made 58.2 mln stg in sales last year. Pretax profit before amortisation of goodwill was 4.1 mln stg.

This year the company has announced a contract for debt manager software for the UK Department of Works and Pensions.

Founded in 1956, Fair Isaac was listed on NASDAQ in July 1987 and subsequently moved its stock to the New York Stock Exchange in 1996.

It has a market capitalisation of approximately 2.6 bln usd.

London Bridhe shares soared 52.4% to 93.75p.