Shares in Bristol-headquartered education software company Tribal Group jumped by more than 21 per cent following the board’s acceptance of an £189.3m private equity takeover offer.
The all-cash offer comes from a newly formed entity controlled by funds managed or advised by Main Capital, a Dutch private equity firm focused on software investments with approximately £10 billion in assets under management.
Main made its approach two weeks after Tribal received a highly conditional, non-binding proposal from London-headquartered SilverTree Equity Partners at 95p per share in cash. The board of Tribal, led by chief executive Mark Pickett, rejected SilverTree’s approach due to concerns over funding and regulatory delays.
The transaction constitutes a fundamental change of business and requires shareholder approval at a general meeting scheduled for 2 October. Shareholders representing more than 44 per cent of Tribal’s stock have already pledged support for the deal.
The takeover builds on recent structural shifts across the education management software market. Technology sector reports indicate that European enterprise software providers face rising demand from higher education institutions looking to transition legacy administrative systems to cloud-hosted platforms. Main Capital’s acquisition gives Tribal direct access to capital backing and software portfolio resources to support that transition across international markets.
Mark Pickett, chief executive of Main Capital, said its “deep software expertise, international network and experience supporting ambitious growth strategies” made it a strong partner for Tribal. He added that under its ownership, Tribal could look forward to “accelerating product innovation, cloud adoption and international growth”.
Founded in 1999, Tribal develops student information systems and education management software. It employs around 915 staff and serves more than 660 institutions worldwide, including over 200 universities across the UK, Australia, New Zealand, Canada and Asia-Pacific.
The transaction covers Tribal’s Student Information Solutions division and its Etio business, encompassing six subsidiaries. Alongside its Bristol headquarters, the business operates offices in Sheffield, Lancaster and Hessle in Yorkshire.
Tribal’s shares closed at a three-month high of 81.2p following the announcement and remained flat in subsequent early trading.
