Citadel Group to be acquired by Pacific Equity Partners for $A500M

Cloud ECM and healthcare software specialist Citadel Group has agreed to a $A500 million takeover by by Pacific Equity Partners (PEP), a private equity firm with over $A5 billion assets under management.

Citadel’s board unanimously recommended that shareholders vote in favour of the proposal in the absence of a superior one.

Citadel board chair Peter Leahy said, “The [PEP acquisition bid] is an attractive transaction which provides an all-cash option for Citadel shareholders. The Citadel board has unanimously concluded that the Scheme represents a compelling outcome for our shareholders, customers, suppliers, and staff.”

“The price is a very tangible measure of the value and quality of Citadel’s industry leading expertise in specialist software and critical secure information management in complex environments like healthcare, defence and national security, government and tertiary education.”

“At a significant premium to the current trading price, PEP’s offer provides Citadel shareholders with certainty of value and the opportunity to realise their investment in full for cash.”

“Citadel’s customers will benefit from access to a broader product suite and service capability given Citadel’s ability to invest more in growth markets and sectors, and further develop its industry-leading software solutions, with PEP’s backing. In addition, the Scheme is positive news for Citadel staff, as we believe there will be increased opportunities to develop new technologies with new partners and advance and grow their careers.”

Citadel expects the acquisition will finalise in December 2020, subject to some conditions satisfied.