Gamma £1B Acquisition
Private Equity Firm Epiris Agrees to Buy Gamma for £1 Billion
Anonymous
Key Points
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Gamma's 2025 results show strong unit economics: £645.8m revenue, £141.7m adjusted EBITDA, with 89% of sales from recurring revenue and a 93% adjusted cash conversion.
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Directors have irrevocably undertaken to tender 114,824 Gamma shares, about 0.13% of issued shares (excluding treasury), to the deal.
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Equity value stands at £1.015bn (1,120p per share) with an implied enterprise value around £1.079bn; the offer carries a 53% premium to Gamma's undisturbed price and higher VWAP-based premiums.
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Gamma had received inbound interest from several parties, and the board said Epiris offered the most attractive combination of value, certainty and deliverability for either the whole group or for parts.
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Completion is expected in the first half of 2027 and will be effected via a court-sanctioned scheme of arrangement, subject to shareholder and regulatory approvals.
Private equity firm Epiris has agreed to buy Gamma Communications for £1.015 billion in an all-cash deal, Reuters reported. The offer values each share at 1,120 pence — a 53% premium over Gamma's previous trading price. The Armchair Trader noted Gamma's board unanimously backed the proposal and will recommend shareholders vote yes.
Gamma, a European business communications provider, generated £645.8 million in revenue and £141.7 million in adjusted EBITDA in 2025, with 89% of sales from recurring contracts. IT Brief said the deal will be completed through a court-approved scheme of arrangement, expected to finish in the first half of 2027 subject to regulatory approvals.
Why Epiris Wants Gamma's Stable Cash Engine
Gamma's strength lies in predictable revenue. The company boasted a 93% adjusted cash conversion rate and a customer base spread across Europe, Ask Traders reported. This recurring revenue model — 89% of total sales — appealed to Epiris, which saw value and certainty beyond the public markets.
The private equity firm plans to accelerate growth by increasing investment in product development, sales execution, and artificial intelligence adoption. Taking Gamma private removes quarterly earnings pressure, allowing longer-term strategic moves.
A 53% Premium Reflects Board Confidence
At 1,120 pence per share, the offer represents significant shareholder gains. Reuters noted this marks a 53% premium to Gamma's undisturbed price before the takeover announcement. Financial advisors Barclays and Q Advisors deemed the terms fair to shareholders.
Directors have committed to tendering 114,824 shares — about 0.13% of issued shares — to the deal, signaling internal alignment. The implied enterprise value totals around £1.079 billion, including assumed debt and other obligations.
Gamma Weighed Multiple Bidders Before Choosing Epiris
Gamma received inbound interest from several parties before accepting Epiris's proposal. The board determined that Epiris offered the strongest combination of value, certainty, and realistic execution — whether acquiring the whole group or specific divisions.
Completion hinges on shareholder approval and regulatory clearance. Tel Co News confirmed the deal will be implemented via Bradbury Bidco Limited, a newly formed acquisition entity controlled by Epiris, with closing expected in the first half of 2027.
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