Idox, a UK-based software company specializing in services for building control, environmental health, and licensing, has agreed to a £339.5 million ($438 million) takeover by U.S. investment firm Long Path Partners. The acquisition, announced on October 28, 2025, involves an all-cash offer of 71.5 pence per share, representing a 27.7% premium over Idox’s closing share price on October 27. (The Times)
Deal Overview
- Acquirer: Long Path Partners, a U.S.-based investment firm managing approximately $1.6 billion in assets. (The Armchair Trader)
- Target: Idox plc, a provider of software solutions for public sector clients, including local authorities and engineering firms.
- Acquisition Vehicle: Frankel UK Bidco Limited, a newly formed company indirectly owned by Long Path’s investment funds. (Investegate)
- Offer Price: 71.5 pence per Idox share, valuing the company at £339.5 million. (Investegate)
- Premium: 27.7% over Idox’s closing share price on October 27, 2025. (The Times)
- Approval Status: The deal has been unanimously recommended by Idox’s board. Shareholders representing over 35% of Idox’s shares have committed to vote in favor, with the acquisition expected to close in the first quarter of 2026. (Reuters)
Workforce Impact
The acquisition is expected to lead to a net reduction of approximately 5% of Idox’s workforce, which currently stands at around 680 employees. (The Times)
Strategic Rationale
Long Path believes that taking Idox private will allow the company to focus on long-term goals, technology investment, and customer needs without the pressures of public markets. The firm plans to inject about £5 million into Idox to improve customer experience and support product development. (Reuters)
Legal and Regulatory Process
The acquisition will be implemented through a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. A general meeting and court meeting concerning the deal are expected to take place in the fourth quarter of 2025. (lse.co.uk)
This takeover marks a significant move in the UK tech sector, reflecting increased interest from overseas investors in UK-listed technology firms.
The London-listed software company Idox plc has agreed to a £339.5 million takeover by Long Path Partners, a US-based investment firm and long-term shareholder.1 The deal will take Idox private, marking another instance of a UK tech company being acquired by an overseas investor.2
Idox Takeover: Key Details and Terms
| Aspect | Details |
| Target Company | Idox plc (AIM-listed, UK-based software provider to public and infrastructure sectors). |
| Acquirer (US Investor) | Long Path Partners (Stamford, Connecticut-based privately-owned investment firm). |
| Deal Value | £339.5 million (approx. $415 million USD). |
| Offer Price per Share | 71.5 pence in cash. |
| Premium | Approx. 26.8% premium to Idox’s closing share price on the day prior to the announcement. |
| Transaction Type | Recommended all-cash acquisition, to be implemented via a court-sanctioned scheme of arrangement (taking the company private). |
| Status | Unanimously recommended by the Idox Board. Subject to shareholder and court approval. Expected to complete in Q1 2026. |
Rationale for the Acquisition
From Long Path Partners (The Acquirer):
- Believes Idox’s public listing no longer best serves its long-term development prospects.3
- Aims to accelerate investment in product and innovation, focusing on the long-term success of the business away from the public market’s pressure for short-term targets.4
- The firm, which already held a 12% stake, sees the deal as an opportunity to steer the company through its next phase of growth.5
From Idox (The Board):
- Acknowledges that pursuing its long-term strategy as a public company carries execution risks and faces wider public market liquidity pressures in the UK market.6
- The deal offers shareholders an “attractive, certain value in cash today” at a significant premium.7
- Welcomes Long Path’s intention to increase investment and, over time, grow the overall headcount of the business.8
Market and Industry Comments
The Idox takeover is a major case study in the continuing trend of overseas, particularly US, investment funds acquiring UK-listed technology firms.9
🇬🇧 UK Valuation and Liquidity Issues
- Undervaluation: Commentators often attribute this trend to the subdued valuations and thin market liquidity on UK public markets, especially on the AIM exchange where Idox is listed.10 US investors, particularly private equity or long-term investment firms like Long Path, view these companies as undervalued assets compared to their peers in other markets.
- “Buy-Low” Strategy: By taking the company private, the investor can remove it from the market scrutiny that might be depressing its share price, restructure or invest heavily, and potentially achieve a greater valuation when or if it is relisted years down the line.
Private Ownership for Long-Term Growth
- Short-Termism vs. Long-Term Strategy: A consistent comment in these transactions is the advantage of private ownership, which allows management to “forgo short-term profitability” in favour of long-term strategic projects and material acquisitions.11 Public markets typically demand smooth, predictable quarterly earnings, which can discourage large, disruptive investments needed for significant product development or market expansion.
- Focus on Public Sector Niche: Idox provides mission-critical software solutions to government and public sectors (e.g., planning, elections technology).12 These are businesses with high recurring revenue and long-standing customer relationships, making them attractive, high-quality targets for investment firms looking for stable, niche businesses to scale.
The Idox deal underscores the ongoing debate about the attractiveness and competitiveness of the London stock market for growing technology companies.