The share price of UK robotics company Blue Prism has been in sparkling form this past week. The company was the best-performing stock on the London Stock Exchange, according to the latest Saxo Markets LSE Winners report.
Here is everything you need to know about Blue Prism, as well as why its shares were on a tear last week.
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What is Blue Prism?
Blue Prism specialises in the development of Robotics Process Automation (RPA) software. It helps companies to automate complex administrative tasks, saving time, human effort and costs.
Blue Prism was founded in 2001 and has been a member of the LSE junior stock exchange, AIM, since 2016.
It currently boasts more than 2,000 business clients, spanning 70 sectors and 170 countries. Some of Blue Prism’s high-profile clients here in the UK include Waitrose, Jaguar Land Rover and the NHS.
How much did the Blue Prism share price rise and why?
According to information from Saxo Markets, the company saw its share price jump 30% last week.
The rise followed an announcement from the company that it was in talks with two US private equity firms, TPG Capital and Vista Equity Partners, about a takeover bid.
This is not the first time a UK firm has attracted interest from US private equity firms. The likes of Morrisons, Ultra Electronics and Meggitt have all recently caught the eye of US private equity.
In Blue Prism’s case, no official offer has been made yet. The company was quick to emphasise that “there can be no certainty that any offer will be made, nor as to the terms of which any offer would be made”.
The two entities that have expressed interest in Blue Prism have until 28 September to make a firm offer.
Interestingly, one of Blue Prism’s investors, Coast Capital, has expressed concern about the company’s current valuation. It believes Blue Prism is currently undervalued and should not be sold at the current share price. As mentioned by Saxo Markets, Coast Capital has encouraged Blue Prism to consider more appealing alternatives before agreeing to a potential buyout.
Regardless, the news of takeover talks was enough to trigger high investor interest in the company and cause its share price to surge by 30%, making it the biggest riser on the LSE last week.
What other companies performed well?
Here are a few other companies on the LSE that posted notable gains last week:
- DiscoverIE Group – 26.26%
- IP Group – 12.40%
- Energean – 10.60%
- Clipper Logistics – 10.11%
- Ninety One – 9.57%
- Homeserve – 8.72%
- Caretech Holdings – 8.71%
- Draper Esprit – 8.03%
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Can I buy shares in Blue Prism?
You can buy Blue Prism shares through a share dealing account that gives you access to companies listed on London’s AIM market.
However, if you are able to, consider investing using a stocks and shares ISA. This is essentially a tax wrapper that shelters your investment growth or income from tax. This way, you get to keep more of your returns instead of having to share them with the taxman.
As always, keep in mind that stocks can be volatile. The value of your investments can go up and down, and you may get back less than you originally put in. Before you invest, be sure to do your due diligence and seek professional advice if needed.
Please note that tax treatment depends on your individual circumstances may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
