LIVE M&A SITUATION LONDON STOCK EXCHANGE: GAMA.L TARGET: GAMMA COMMUNICATIONS PLC

Gamma Communications M&A Takeover Premium & Buyout Valuation Model

Independent valuation, debt capacity, and sponsor return workbench assessing the reported revised takeover offer from a Dutch private equity consortium (Sunday Times / Reuters).

Reported Catalyst: Sunday Times confirms Dutch PE sweetening initial indicative approach

Deal Parameters

M&A Offer Presets
£19.50
£14.00 (Undisturbed) £24.00 (Aggressive)
4.5x
2.5x (Conservative) 6.0x (Aggressive PE)
20.0%
15.0% Min PE Hurdle 25.0% Top Quartile
£124.5M
£80.0M £160.0M (Interim FY25)
£122.0M
£105.0M £140.0M Consensus

Key Valuation & Buyout Telemetry

OFFER PREMIUM TO UNDISTURBED
37.32%
vs £14.20 undisturbed closing
IMPLIED EQUITY VALUE
£1907.1M
97.8M diluted ordinary shares
IMPLIED ENTERPRISE VALUE
£1782.6M
Adjusted for £124.5M net cash
IMPLIED EV / EBITDA
14.61x
on £122.0M run-rate EBITDA
SENIOR DEBT FINANCING
£549.0M
Funded at 4.5x target leverage
SPONSOR EQUITY CHECK
£1358.1M
71.2% equity contribution
REQ. 5-YR EXIT EQUITY
£3379.4M
Target 20.0% sponsor net IRR

Sources & Uses / Enterprise Value Bridge (£M)

Exit Value & MOIC Sensitivity Matrix (5-Year Hold at Selected IRR)

Offer Price (£/sh) Equity Value (£M) EV (£M) EV/EBITDA Sponsor Eq. Check 15% IRR Exit 20% IRR Exit 25% IRR Exit

Precedent UK Enterprise Cloud Telecom Take-Privates & Comparators

Target / Deal Acquirer / Sponsor EV (£M) EV/EBITDA Offer Premium Structure / Rationale
Gamma Communications (Current Model) Dutch PE Consortium £1,782.6M 14.61x +37.32% Sunday Times reported sweetened cash offer
KCOM Group plc Macquarie European Infrastructure £627M 11.8x +49.0% Competitive bidding war vs USS pension fund
TalkTalk Telecom Group Toscafund Asset Management £1,812M 7.2x +16.4% Heavily levered broadband carveout
Inmarsat plc Apax, Warburg Pincus, CPPIB £4,600M 10.5x +45.0% Satellite telecom take-private consortium
Euromoney Institutional Astorg & Epiris £1,660M 16.5x +34.0% Fast-growing subscription B2B recurring SaaS
INVESTMENT COMMITTEE TRANSACTION MEMORANDUM CONFIDENTIAL DEAL ROOM
Loading scenario analysis...

Source takeover scenario equations

Read the explanation

Using source assumption ninety-seven point eight million shares and entered bid nineteen point fifty, implied equity value is nineteen hundred seven point one million pounds. Subtracting entered net cash one hundred twenty-four point five gives enterprise value seventeen hundred eighty-two point six million. Bars use point two five pixels per million pounds. These are hypothetical source inputs, not verified company data or current transaction information. The source multiplies entered leverage four point five by entered EBITDA one hundred twenty-two, assigning debt five hundred forty-nine million pounds. Its sponsor equity equation subtracts that debt from implied equity nineteen hundred seven point one, leaving thirteen hundred fifty-eight point one. Bars use point three five pixels per million. This describes the code convention, not a financed deal or investment recommendation. The model required five-year exit equity equals sponsor equity times one plus entered annual rate to power five. At twenty percent, thirteen hundred fifty-eight point one multiplies by one point two five times. Bars compare starting and required exit equity at point one five pixels per million pounds. This is a target calculation, not an expected or guaranteed return. Full raw native export, real reset, responsive allocation and first-footer checks preserve the existing tool.

Super generates helpful tools and automates fact-checking across the internet proactively. If you enjoyed this tool, build your own with Super and share it with a friend.