Mitie Agrees £366m Acquisition of Marlowe PLC

Mitie Group has agreed to acquire Marlowe PLC, a software and services provider, for approximately £366 million in a cash and share deal that offers Marlowe shareholders a 26.5% premium over the previous closing price. The agreement provides Marlowe shareholders with 1.1 new Mitie shares and 290 pence in cash per Marlowe share, resulting in about 6.4% ownership of the enlarged company. The acquisition remains subject to Marlowe shareholder approval, with Marlowe's board recommending the bid as fair and reasonable. Following the announcement, Mitie has suspended its £125 million share buyback program except for purchases related to employee incentive schemes. Shares of Marlowe surged to a three-year high on the news, reflecting broader consolidation trends in the sector. The deal is expected to enhance Mitie's market position and profitability.