Vista to buy Advanced Computer Software for £725m

ACS CEO Vin Murria had told Computing in April that she was keeping potential buyers at bay

Advanced Computer Software (ACS) Group, which provides healthcare, business management and learning software, is being bought by US private equity firm Vista Equity Partners, in a deal that values the firm at £725m.

ACS shareholders will be entitled to receive 140p per ACS share - a 17 per cent jump from yesterday's closing price.

ACS shares rose 15 per cent to 138.25p at the beginning of Tuesday, and at the time of writing were trading at 137.75p per share.

Vista Equity Partners focuses on investing in software and technology-enabled businesses and claims that it has made more than $14bn in cumulative capital commitments.

ACS's CEO Vin Murria (pictured) had told Computing in April that her aim was to create "the next big UK software business".

"I think I'm keeping buyers at bay. We say things like come back to us in three to five years."

But the offer from Vista Equity Partners must have been too good to turn down.

Commenting on the acquisition, Murria said that since the company's inception six years ago, ACS's value had grown from £32m to £725m, with the offer price representing an increase of over 724 per cent over that period.

"In the six years from inception to February 2014, we have grown the wider ACS Group's revenue to £203m and Adjusted EBITDA to £45m (CAGR of 46 per cent and 44 per cent respectively over the last five years), by a combination of acquisitions and strong organic growth. For the first six months of this financial year revenue was £108m, up 9 per cent and Adjusted EBITDA was £25m, up 14 per cent."

Brian Sheth, president of Vista Equity Partners, said that Murria and her team had "built a company with exceptional employees, high quality solutions, and longstanding client relationships".

He hinted that Murria and her team would remain a part of Vista's plans moving forwards with ACS.

"Vista especially like investing in the vision and commitment that a leader like Vin and the management team inspires. They are best positioned to expand the ACS platform and meet the needs of a growing customer base to continue their success. We look forward to welcoming ACS into the Vista family," he said.