Ashtead Technology has agreed a recommended cash takeover by a vehicle backed by Ember Infrastructure Management, in a deal valuing the offshore energy technology specialist at about £505m and bringing it into private ownership.

The offer, which has been unanimously recommended by the board of Ashtead Technology, will see the bidder acquire the entire issued and to be issued share capital of the company through a court-sanctioned scheme of arrangement.

Aberdeen-based Ashtead Technology supplies subsea equipment and technology services to the offshore energy sector, serving customers across offshore oil and gas, offshore wind and marine infrastructure markets. In recent years, the company has benefited from strong demand for offshore inspection, survey and asset integrity services as energy companies invest in both traditional and renewable energy projects.

The transaction is the latest example of infrastructure and private equity investors targeting listed UK industrial and energy services companies with established market positions and long-term growth prospects.

Ember Infrastructure Management said the acquisition gives it exposure to offshore energy infrastructure and technology markets at a time when investment in energy security and the energy transition continues to support demand across the sector.

Bill Shannon, chairman of Ashtead Technology, said: "Throughout this process, the board's priority has been to ensure that the high quality of the Ashtead Technology Group and its prospects are fairly recognised in the terms of Ember's cash offer. The board believes that the acquisition recognises the strength of the Ashtead Technology Group and provides shareholders with a compelling opportunity to realise significant value today when compared with the risk-adjusted return that would be expected to be delivered through the execution of Ashtead Technology's standalone strategy. Accordingly, the Ashtead Technology Board intends to recommend that shareholders vote in favour of the Acquisition."

Elena Savostianova, founder and managing partner of Ember, added: "Ember greatly admires the business that the world-class team at Ashtead Technology has built, and we are proud to be partnering with them on the Company's next phase of growth. We will support the Company in pursuing its current strategy with greater ambition and with the support of additional long-term private capital. We look forward to continuing to invest in the fleet, technology, and people as Ashtead Technology extends its capabilities and international reach."

Shares in Ashtead Technology jumped 14.7% to 608p following the news.

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