US firm Long Path to buy UK's Idox for $438 million

(Reuters) -U.S. investment firm Long Path agreed to take British software provider Idox private in a 339.5 million pound ($438 million) deal on Tuesday, offering shareholders 71.5 pence per share in cash.

The offer for the maker of specialist software for government planning, regulatory compliance and elections technology, by its second-largest shareholder, represents a 27.7% premium to Idox's closing price on Monday.

Long Path said it plans to inject about 5 million pounds into the business at deal closing to improve customer experience, and expects an initial headcount reduction of around 5%.

Idox's board has unanimously recommended the deal, which has secured binding commitments from investors representing over 35% of Idox's shares and is expected to close in the first quarter of 2026.

(Reporting by Yadarisa Shabong and Shashwat Awasthi in Bengaluru; Editing by Mrigank Dhaniwala)