Private equity groups in $1bn SkillSoft takeover

SKILLSOFT, THE technology group that began life as SmartForce, is being taken over by three private equity groups for $1.1 billion.

The all-cash deal will see the companies pay $10.80 per share for SkillSoft, which is based in New Hampshire in the US but has its global headquarters in Dublin.

The firm makes software for training employees, having been established in 1989. SmartForce was taken over by SkillSoft in 2002, with the group enlarging through the NETg acquisition in 2007.

The takeover is being backed by Berkshire Partners, Advent International and Bain Capital, which have come together to form a new Irish-based company called SSI.

SkillSoft will continue to be based in Dublin when the deal is completed and Chuck Moran will remain as chief executive.

“We believe the transaction is good for our shareholders as the offer represents an attractive premium relative to our trading history,” said Mr Moran. He also noted the all-cash nature of the deal, which he said would provide liquidity for shareholders.

The offer price represents a 26 per cent premium above the average SkillSoft closing price over the 12 months to Thursday last. It is being recommended by the SkillSoft board, which has been advised by Credit Suisse.

The takeover will take effect through a scheme of arrangement, which means it must be approved by at least 75 per cent of SkillSoft shareholders at a special meeting and sanctioned by the High Court.

SkillSoft was founded by technology entrepreneur Bill McCabe and attracted thousands of small Irish investors when it listed on the Nasdaq.

Many shareholders faced substantial losses after the SkillSoft takeover when the stock was punished amid revelations of overstated accounts at SmartForce over a three-year period to 2002. At that stage, the company’s value fell below $200 million.