Tech firm Idox to cut jobs after US takeover agreed

UK software company Idox has agreed to be bought by a US investor in a deal it said will lead to job cuts.

Bosses at the Woking-based technology business have agreed for it to be bought by Long Path, the group’s second largest shareholder, for £339.5 million.

On Tuesday, Idox said there are likely to be initiatives to improve operations once the deal is completed, which are expected to lead to a reduction in the group’s headcount.

It said this expected to cut around 5% of the workforce of the firm, which currently employs around 680 people.

The business also said a “limited number of roles” at the business will be impacted by it becoming a private company and no longer needing certain “corporate functions” required of publicly listed businesses.

Any job cuts are likely to take place up to two years after the deal is completed, Idox added.

New York-based Long Path has said it will pay 71.5p per share in the business, representing a premium of around 26.8% compared to its share value at the end of trading on Monday.

Long Path, which currently owns 12% of the business, said it believes the firm will “benefit from private ownership”, helping it to drive investors in its product and technology.

Chris Stone, Idox’s chairman, said: “The offer recognises the work undertaken by the board, management and employees of the Idox business and provides Idox Shareholders with an attractive, certain value in cash today that reflects the quality of our business and its people.”