The logo for Dye & Durham Ltd. is shown in this undated handout photo. THE CANADIAN PRESS/HO
July 10, 2023 - 8:10 AM
TORONTO - Dye & Durham Ltd. has signed a deal to sell its TM Group business to Aurelius in an agreement worth up to 91 million pounds after a British competition regulator took issue with its acquisition of the business in 2021.
Under the transaction, Dye & Durham will receive about 50 million pounds in cash at closing, with up to 41 million pounds in potential additional earn-out payments between 2023 and 2026.
The company announced the acquisition of TM Group (UK) Ltd. in July 2021 in a deal worth about 91.5 million pounds.
However, the United Kingdom's Competition and Markets Authority (CMA) reviewed the deal and ordered the sale of the software company's acquisition after it found it would "substantially" lessen competition in property search reports in England and Wales.
Aurelius is a globally active alternative investment firm, according to Monday's press release from Dye & Durham.
Dye & Durham says the deal is expected to close in August and has received approval from the Competition and Markets Authority. It says it plans to use the net proceeds it receives at closing to reduce debt.
Dye & Durham CEO Matthew Proud says the company plans to seek new merger and acquisition opportunities in the United Kingdom to continue to grow its business.
"We’re pleased to enter into this agreement with Aurelius and put this regulatory process behind us," Proud said in a statement.
"While TM Group wasn’t material to our overall business, it is a profitable organization that will generate additional value in the hands of its new ownership."
This report by The Canadian Press was first published July 10, 2023.
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News from © The Canadian Press, 2023