DBay to acquire Harvey Nash in £98.7m deal

According to a statement issued to the London Stock Exchange (LSE), the proposed transaction would give the business an enterprise value of 9.1x its EBITDA.

The LSE-listed company's independent board of directors have unanimously recommended that shareholders vote in favour of the scheme. They have also provided irrevocable undertakings accounting for 2.33% of those scheme shares with a voting entitlement at the related general meeting.

The proposed transaction values shares in Harvey Nash at 130 pence apiece, equivalent to a premium of 35.8% on the average closing price over the course of the last 12 months, and 16.6% on its most recently applicable closing price.

Harvey Nash has undertaken an acquisitive growth strategy over the course of the last two years, most recently acquiring Belgian technology recruitment and outsourcing business eMenka in a €1m deal in May 2018, and IT-focused recruitment firm Crimson in a £6m deal in September 2017.

Prior to the conclusion of the transaction, DBay holds a 26.1% stake in the group.

According to the GP's website, DBay raised its third fund in 2018; its LP base includes institutional investors, trusts, foundations, family offices and pension funds.

Company
Founded in 1988, London-headquartered Harvey Nash focuses on recruitment services and technology. The business employs 8,000 people in 40 offices across Europe, the US and the Asia-Pacific region.

The group generated a turnover of £887.5m in the year ending in January 2018 with EBITDA of £12.4m, according to publicly available documents.

Advisers
Equity – Deloitte (corporate finance); Addleshaw Goddard (legal).
Company – Rothschild & Co (corporate finance); Panmure Gordon (broker); Travers Smith (legal).

People
DBay Advisors – David Morrison (investment director).
Harvey Nash – Julie Baddeley (chairperson).

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