UK-based IT staffing firm Harvey Nash (HVN: LSE), announced today that it has agreed to an acquisition offer from The Power of Talent Ltd (Bidco) an entity owned and controlled by investment funds managed by DBAY Advisors Limited.

The Harvey Nash Offer Price values the entire issued and to be issued share capital of Harvey Nash at approximately £98.7 million.

The offer is for all shares which are not already directly or indirectly owned by DBAY funds and, under its terms, Harvey Nash shareholders will receive 130 pence in cash for each share (a 17% premium on the closing price yesterday) and one interim dividend of up to 1.75 pence per share, the company said.

Harvey Nash said its directors will recommend unanimously that shareholders vote in favor of the offer at the general meeting.

The company said the offer is in the best interests of its shareholders, staff and clients. DBAY offers stability and has stated it intends to support employees and invest in the business, Harvey Nash said.

DBAY had been Harvey Nash’s largest shareholder with ownership of 26.1% of the company’s shares. The company describes itself as “an international asset management firm with offices in Douglas (Isle of Man) and London”. DBAY was among the firms named in the so-called ‘Paradise Papers’, a leak of offshore activities published by The International Consortium of Investigative Journalists in 2017. The company’s other significant investments include marketing services specialist, Unlimited Group and logistics/haulage firm, Eddie Stobart.

Julie Baddeley, chairman of Harvey Nash commented, “Harvey Nash's acquisition strategy and successful transformation programme has resulted in significant shareholder value being created over the past two years.”

“While the independent Harvey Nash directors believe Harvey Nash would have a strong future as an independent listed company, they consider that the offer, which is wholly in cash, represents attractive value and is in the best interests of Harvey Nash shareholders, staff and clients,” Baddeley said.

David Morrison, investment director of DBAY also commented, "DBAY is pleased to have reached agreement with the Independent Harvey Nash Directors on an attractive cash proposal for Harvey Nash shareholders.”

"We know the Harvey Nash business well having been significant investors since February 2017 and are delighted to have the opportunity to partner with the Harvey Nash management team and employees to further strengthen its leading position in the specialist technology recruitment and outsourcing markets,” Morrison said.

For the full year 2017, Harvey Nash reported revenue of £889.3, an increase of 9.2% in constant currency, with gross profit of £100.1 million.

As of last trade Harvey Nash Group shares traded at £130.05, up 16.16% on the day and 1.48% below its 52-week high of 132.00, set on 10 July 2018. Based on its current share price the company has a market value of £81.90 million.