BT Group (BT.A) has announced an agreed takeover offer for technology business Tikit (TIK), which specialises in applications and software for the legal profession.
IC TIP:
Buy
at
200p
The £64.2m deal values Tikit at 416p a share, which is an 18 per cent premium to its closing price on Tuesday and is more than double the price at which we recommended Tikit as a buy almost exactly two years ago (200p, 12 November 2010). Tikit supplies 92 of the top 100 UK law firms and its expertise in the legal sector should add to BT’s business retail offering and also allow for some level of cross selling. The deal has been recommended by Tikit’s board and should be affected by mid-January through a scheme of arrangement.
