RPA technology provider Blue Prism confirmed that it is considering offers from two private equity firms, sending shares of the publicly traded company soaring more than 30 percent last week, according to a report from Reuters news service.
Blue Prism, which currently is listed on the London Stock Exchange’s AIM market for small and midsize growth companies, was founded in 2001 and was an RPA pioneer often credited with originating the term, “robotic process automation.” According to the report, Blue Prism is in discussion with U.S.-based firms TPG Capital and Vista Equity Partners about possible takeover offers.
At least one current shareholder is publicly opposed to the sale. Coast Capital, which owns a 3 percent stake in Blue Prism, sent a letter to company executives claiming the organization is undervalued and a takeover at the current share price would be a mistake, according to CNBC, which saw the letter.
“Were a buyer to pay a premium of 100 percent, the share price would still be materially lower than its intrinsic value, and well below where the shares were trading as recently as January 2021,” the letter said. “Even at its current worst, the company enjoys an enviable reputation as a best-in-class performer, and as a result remains a leader in its rapidly growing and very profitable industry.”
At the time of the announcement, Blue Prism’s market value stood at £805 million ($1.1 billion).