The long-running all-share takeover of Crimson Tide plc by Checkit PLC has collapsed.
The deal was not backed by the required majority of shareholders, with 51% voting in favour and 49% against.
Following the news, Crimson Tide chair Jacqueline Daniell, a former CEO at the firm, said she would step down from the position and from the company’s board.
Last month Crimson Tide agreed an all-share takeover offer from Checkit at a lower price following a three-way fight with Ideagen.
Crimson Tide plc rejected two hostile bids from Checkit plc last summer as Ideagen considered a £20.5m move for the Tunbridge Wells firm, but the private equity-backed Nottingham-headquartered RegTech opted against making an offer.
Crimson Tide appointed a new CEO in Phil Meyers in May 2024 and is behind process management app mpro5, which enables organisations to digitally transform their business and strengthen their workforce by smart mobile working.
Checkit, an augmented workflow and smart sensor automation company for frontline workers, had improved its hostile offer from seven Checkit shares per Crimson Tide share – valuing the business at £12m – to nine.
In The Style saved? Fashion retailer ‘bought out of administration’
The merger was finally agreed last month in a deal worth just six Checkit shares per Crimson Tide share, valuing the latter at £6.5m. Daniell would have joined the Checkit board as a non-executive director, with Checkit CEO Kit Kyte remaining in post at the head of the combined company.
It was expected that Crimson Tide’s executives would be handed management roles within the combined group, while the other non-executive directors would resign.
However it has now fallen through. Prior to her decision to step down, Daniell said the result was “regrettable” but added that the board “respected the outcome of the scheme process”. She will continue to serve as chair until the Crimson Tide AGM in June 2025, or such time as a new chair is appointed.
Checkit is prohibited from making any offer for Crimson Tide in the next 12 months.
Checkit reported revenue for the year ended 31st January 2025 of £14m, up from £12m in the prior year, while Crimson Tide reported revenue of £3.14m – a rise of 3.3% – for the six months to 30th June 2024.
Checkit’s share price, which stood at 23p last summer, currently stands at 14.4p.
Crimson Tide’s share price, which rose to 270p last summer amid the three-way battle, is currently 68p and has dropped 50% in the last six months.