The board of BCA Marketplace has given its backing to a takeover bid from private equity firm TDR which values the group at £1.9 billion.

The two companies reached agreement on the cash offer of 243p per share and said it is line with the value it disclosed last week when AM reported that TDR was in advanced acquisition talks with BCA.

The announcement followed BCA's publishing of its full-year results, showing revenues up from £2.4bn to £3bn, and adjusted EBITDA up to £172m from £160m.

“TDR believes that BCA is well placed to benefit from further growth within the automotive services industry,” said the prospective new owner. TDR Capital is also one of the co-owners of the leasing company Leaseplan.

The deal includes a dividend of 6.65p per share for BCA shareholders who were on its register on a date yet to be confirmed, but likely to be September 20, 2019.

BCA's board said they "consider the offer to be fair and reasonable", and  will recommend that shareholders back the sale.

They said they already have the support of shareholders holding 44% of BCA's total shareholding.

"The offer from TDR gives shareholders the opportunity to receive cash at a significant premium to the prevailing share price and will allow BCA to develop its business as a private, unlisted company," said BCA.

BCA provides physical and digital auctions, stock funding, logistics, defleet services and outsourced remarketing for vehicle manufacturers, dealers, fleets, leasing companies and rental organisations.