Equals: Payments fintech extends deadline for merger talks with MDP, Railsr and TowerBrook

Equals has again extended a deadline for formal takeover offers as the fintech payments group conducts a strategic review of its standalone prospects.

The firm has received non-binding takeover proposals from both US private equity firm Madison Dearborn Partners (MDP) and a consortium comprising investment management firm TowerBrook Capital Partners and London-based fintech Railsr, chaired by ex-Chancellor Philip Hammond.

AIM-listed Equals, which offers business-to-business payment solutions, first announced last November that it was conducting a strategic review. This included contacting potential buyers to see if they could make a proposal that would deliver greater value to Equals’ shareholders than its independent strategy.

MDP, the first prospective bidder, had until 29 November 2023 to announce a firm intention on whether it would make an offer for Equals.

The deadline was subsequently pushed forward a number of times, most recently to 5pm today. This deadline also applied to the consortium.

Equals said in a stock market filing on Wednesday that amid ongoing discussions and due diligence with each party, the fintech’s board had secured an agreement with the Panel on Takeovers and Mergers to extend the deadline once again to 5pm on 15 May.

The firm commented: “Whilst the board recognises the time elapsed since the commencement of the strategic review, having now received indicative non-binding proposals from both MDP and the consortium, it considers it to be in the best interests of shareholders that the strategic review remains ongoing to allow further time for it to reach its conclusion.”

It added: “There can be no certainty either that an offer will be made nor as to the terms of any offer, if made.”

The news comes shortly after Equals reported a more than doubling of its annual profit last year on the back of rapid growth and international expansion, eyeing up further M&A opportunities in 2024.