Dmatek Sells to Francisco Partners

(Reuters) – Dmatek Ltd, which sells technologies that monitor people remotely, said on Monday it had agreed to be bought for 52.9 million pounds ($77.6 million) by an investor group led by private equity fund Francisco Partners.

The Israeli-based firm, whose technologies are used by law enforcement agencies and care homes, said the cash offer of 215 pence a share was 82 percent above the closing price on Oct. 6, the day before it announced bid talks with another party.

It said shareholders including clients of Cavendish Asset Management and Chief Executive Yoav Reisman supported the deal with Francisco Partners, a technology-focused private equity fund, and would reinvest in the business post-acquisition.

Investors working with Francisco Partners include Sequoia Capital Israel, Dmatek said in a statement.

It also said independent shareholders not reinvesting in the business and owning a combined 20.8 percent of equity had signed irrevocable undertakings in support of the deal.

Dmatek had said on Oct. 7 that it was in talks over a potential takeover by investment firm LMS Capital (LMS.L), but on Nov. 19 announced those discussions had ended.

Dmatek shares closed at 142.5 pence on Dec. 24. (Reporting by Mark Potter; Editing by Hans Peters)