Radius Plc is to be bought out by its directors. Shares in the Hull, UK-based systems integration company, whose income has been on the slide for the past three years, leapt 25% to 52.5 pence on news of a 55 pence cash offer from Sudiar Plc, a company set up by the management buy-out team and venture capitalists. For the past three years, RadiusÆ revenues have barely grown in a section of the market growing at 30% annually. After the buyout, the company will go private. Quite how directors of a chronically under-performing company persuaded others to invest in the MBO is not explained. Directors of Sudiar claims that acceptance of the offer will remove the burden of maintaining a listing and enable its divisions to respond to its markets æquickly and efficiently.Æ Earlier this year, the Radius board fought off a bid by co-founder Edward Sharp, to regain control (CI No 3,351).
Content from our partners
