Inside Long Path’s £339m move for Idox: What the deal reveals about private equity’s appetite for UK tech

Long Path, a United States-based investment manager focused on long-term value creation in high-quality businesses, has agreed to acquire United Kingdom software provider Idox plc in an all-cash deal valued at approximately £339.5 million. The acquisition will be implemented through a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 and is backed by irrevocable undertakings and institutional support representing more than 35 percent of Idox’s issued share capital.

Frankel UK Bidco Limited, a newly formed acquisition entity indirectly owned by Long Path investment vehicles, has offered 71.5 pence per share in cash to Idox shareholders. This offer represents a 26.8 percent premium to Idox’s closing price of 56.4 pence on October 27, 2025, and a 29.3 percent premium to its one-month volume-weighted average share price. The bid also marks the highest per-share price for Idox plc since November 2021.

The valuation implies an enterprise value multiple of approximately 21 times Idox’s FY2024 EBITDA and EBIT, a level considered attractive given its sector positioning, mission-critical software suite, and consistent revenue growth trajectory.

Why has Long Path offered a 29 percent premium to acquire Idox in a public-to-private transaction?

Long Path has been a patient shareholder of Idox for the past seven years, holding around 12 percent of the issued share capital as of the offer date. The firm believes that operating Idox as a private company will enable faster innovation, long-term investment in artificial intelligence capabilities, and operational flexibility to pursue both organic and inorganic growth.

The offer premium reflects both a fair valuation for existing shareholders and Long Path’s strategic view that Idox’s true potential is undervalued in public markets. Idox shares have historically traded within a tight range, reflecting public market skepticism toward small-cap UK software firms despite recurring revenues and sector stability. With liquidity constraints affecting UK capital markets and the ongoing macroeconomic pressures facing small and mid-cap technology stocks, private equity firms such as Long Path are stepping in to unlock value through direct ownership.

The all-cash structure gives investors immediate certainty while avoiding the execution risks associated with Idox’s long-term growth plan in the public domain. By offering an exit at a compelling valuation, Long Path addresses shareholder frustration with stagnating share prices and the limited scalability of AIM-listed software names.

What makes Idox’s software platform valuable to long-term private equity investors like Long Path?

Idox plc has built a defensible position in specialist software for asset-intensive and regulated sectors. The company serves thousands of clients including local governments, infrastructure operators, engineering firms, healthcare systems, and private enterprises. Its products help digitise workflows, streamline regulatory compliance, manage geospatial data, and run critical operations such as elections.

Idox’s product architecture spans three primary segments. The Land, Property, Public Protection and Geospatial division delivers planning, public safety, and spatial data solutions for local authorities. The Assets segment focuses on engineering document control, compliance assurance, and facilities management for energy and utilities customers. The Communities business delivers platforms for social care, elections management, and civic engagement.

This diversity gives Idox a resilient recurring revenue base and deep integration across customer operations. Its FY2024 revenue reached £87.6 million, up from £1.2 million in FY2001, reflecting two decades of consistent growth and product expansion. In a market where digital transformation, compliance complexity, and efficiency mandates are converging, Long Path views Idox as a stable, scalable platform for innovation.

How have institutional investors and the Idox board responded to the Long Path proposal?

The board of directors of Idox has unanimously recommended the offer, based on advice from Rothschild & Co, which deemed the terms fair and reasonable. Directors holding 0.73 percent of shares have irrevocably committed to vote in favor of the scheme. Beyond this, Long Path has secured additional irrevocable undertakings from Herald Investment Trust plc and non-binding letters of intent from fund managers including Canaccord Genuity Asset Management, Rathbones Investment Management, and SFM UK Management LLP.

In total, Long Path has firm and indicative support covering 22.97 percent of Idox’s issued share capital. Combined with its existing 12 percent stake, this brings total support to 35.29 percent as of the announcement date.

For institutional investors, the transaction presents a timely liquidity event amid depressed UK tech valuations and growing concern over the viability of AIM listings for mid-cap software companies. Analysts suggest this deal reflects broader investor frustration with public market limitations and a growing interest in private equity-backed exits.

What does the future look like for Idox under private ownership by Long Path?

Long Path has committed to maintaining and expanding Idox’s employee base, signalling a long-term investment horizon focused on innovation, customer satisfaction, and platform development. The firm also plans to accelerate product roadmaps and pursue strategic acquisitions that complement Idox’s existing verticals.

As a private company, Idox would no longer be constrained by quarterly reporting cycles, enabling it to prioritize long-term customer outcomes, staff development, and capital allocation toward high-impact technologies such as artificial intelligence, cloud integration, and workflow automation.

Brian Nelson, Partner and Portfolio Manager at Long Path, stated that the firm believes deeply in Idox’s people, products, and mission. He emphasized the opportunity to enhance the company’s capabilities in mission-critical digital infrastructure for government and commercial clients. The transition to private ownership is viewed as a way to remove the short-term pressures of public markets and enable deeper strategic execution.

Why has the Idox board concluded that a public-to-private transition is in shareholder interest?

Despite consistent operational performance, the board acknowledged that Idox’s share price had remained flat over several years due to market-wide concerns around AIM liquidity, earnings volatility, and macroeconomic uncertainty. These constraints have limited Idox’s access to capital and flexibility in pursuing acquisitions or platform investments.

The board believes that Long Path’s proposal represents full value for shareholders while also supporting the company’s long-term ambition to become a leader in digital public infrastructure. The offer price gives shareholders a clean exit at a compelling valuation, while ensuring that key stakeholders, including customers and employees, benefit from strategic continuity and investment under new ownership.

Chairman Chris Stone said the bid recognises the work undertaken by the board, management, and employees, and provides a path forward that supports growth, product innovation, and stakeholder value. Idox intends to issue its trading update for FY2025 in November, with revenue slightly below prior expectations, though profitability and net debt remain in line.

How will the Long Path and Idox acquisition process unfold through the court‑sanctioned scheme of arrangement and shareholder approval timeline?

The proposed acquisition will proceed through a court-sanctioned scheme of arrangement and requires approval from 75 percent of voting shareholders. A general meeting and court meeting are expected to be held in the fourth quarter of 2025. Subject to approvals and regulatory clearances, completion is anticipated in the first quarter of 2026.

The scheme document, including full terms and proxy forms, will be distributed within 28 days of the announcement and posted on the Idox investor relations website. The board expects a smooth transition given the extensive shareholder support already secured and Long Path’s alignment with Idox’s strategic priorities.

Long Path intends to use its existing funds to finance the acquisition and has confirmed its commitment to completing the deal without any financing contingencies. The Long Path Co-Investment Fund #6, Long Path Smaller Companies Fund, Long Path Smaller Companies Master Fund, and Long Path Opportunities Fund II will hold indirect interests in Bidco post-completion.

What are the most important takeaways from Long Path’s recommended acquisition of Idox plc?

• United States-based investment manager Long Path has offered to acquire United Kingdom-based software provider Idox plc for approximately £339.5 million in an all-cash transaction.
• The acquisition will be implemented via a court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006, with completion targeted for the first quarter of 2026.
• The offer of 71.5 pence per share represents a 26.8 percent premium to the closing price on October 27, 2025, and a 29.3 percent premium to the one-month volume-weighted average share price.
• The bid implies an enterprise value multiple of around 21 times FY2024 EBITDA and EBIT, reflecting the high strategic value of Idox’s public sector software portfolio.
• Long Path currently holds a 12 percent stake in Idox and has secured support from institutional investors totaling more than 35 percent of the issued share capital.
• Idox’s board, advised by Rothschild & Co, has unanimously recommended the transaction, describing the valuation as fair and attractive in light of market conditions.
• Idox is a provider of specialist software used by local authorities, infrastructure operators, and energy firms across the UK and globally for compliance, planning, asset management, and elections.
• Long Path aims to accelerate Idox’s growth and product roadmap by supporting increased investment in artificial intelligence, customer experience, and employee development.
• The deal reflects broader private equity interest in UK-listed tech companies facing valuation and liquidity pressures on AIM.
• Completion of the deal is subject to shareholder votes and court approval, with further details to be outlined in the forthcoming scheme document.