Blue Prism Investor Coast Open to Takeover of Software Firm
(Bloomberg) -- Activist investor Coast Capital has changed tack and is prepared to back a possible private equity takeover of U.K. automation software maker Blue Prism Group Plc.
The investment firm’s founder James Rasteh, who had called for Blue Prism to seek an alternative to a potential acquisition by TPG or Vista Equity Partners, said the company’s management had now earned his trust.
“Coast will be supportive of whatever deal gives the company the best opportunity to improve its prospects,” Rasteh said in an interview Thursday. “We have full confidence in the company’s ability to accelerate growth and reassert its leading role in the sector.”
A representative for Blue Prism declined to comment.
Blue Prism said in August that it had entered talks with TPG and Vista about potential takeover bids for the company. Coast, which owns just under 3% of Blue Prism, responded to the announcement by saying there was a “large valuation chasm to cross.”
Shares in Blue Prism have fallen 13% over the last 12 months, giving it a market value of about 1.1 billion pounds ($1.5 billion).
The software company’s depressed valuation reflects concerns about gaps in its product portfolio and its distance from key clients and investors in the U.S., Rasteh said in August. He said his firm had spent five months drawing up potential operational improvements that would accelerate Blue Prism’s sales growth.
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