Eidos slips away from Elevation

The board of UK computer games publisher Eidos has withdrawn its support for the Elevation Partners cash offer for the company in favour of a higher share offer from a trade buyer.

The board of Eidos, the UK computer games developer that was the subject of a £71 million (€102 million; $135 million) cash offer from US media and entertainment fund Elevation Partners two weeks ago, has announced its support for a new offer from rival SCi Entertainment.

The SCi bid represented a “significant premium to Elevation’s offer”

Eidos board

SCi’s all-share offer values Eidos at £103 million, valuing the company’s equity at 73 pence per share compared with Elevation’s 50 pence bid.

The Eidos board had originally recommended Elevation’s offer last month, but today said that the SCi bid represented a “significant premium to Elevation’s offer”. According to reports, Elevation has declined to improve its terms.

The SCi offer has also received support from 41 percent of Eidos’ shareholder base, according to a statement from the Eidos board.

The Eidos transaction was slated to be Elevation’s first deal, following the fund’s launch last year by Roger MacNamee of Silver Lake Partners. Irish rock star Bono joined the firm in June last year as a general partner.

The firm is expected to announce a final close of its $1.5 billion inaugural vehicle in the next few months according to market sources.

In January, Kevin Albert, former long-time head of Merrill Lynch’s private equity placement business, joined Elevation as partner in charge of investor relations.