The board of Checkit plc has confirmed that it does not intend to make an offer to acquire Crimson Tide plc after the latter rejected its second approach.

Shares in Crimson Tide have jumped almost 50% since Friday after it revealed a potential competing £20.5 million takeover approach from acquisitive Nottingham-headquartered RegTech Ideagen, which it has not rejected.

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.

However it will not now pursue a deal.

“Unlike the first proposal, the revised proposal is stated to be subject to certain pre-conditions, including satisfactory completion of a due diligence exercise,” Crimson Tide stated in relation to the improved approach. 

“Certain of the board’s wider concerns with the first proposal, including as to financial terms, governance and management, were not addressed to the board’s satisfaction in the revised proposal. 

“Accordingly, the board confirms that the revised Checkit proposal has today been rejected. The board notes that neither…. Checkit proposal contained a proposed cash alternative.”

Meet investor bringing private equity model to venture capital

Headquartered in Tunbridge Wells, Kent, Crimson Tide – which appointed a new CEO in May – is the provider of process management app mpro5, which enables organisations to digitally transform their business and strengthen their workforce by smart mobile working. 

The price offered by Ideagen is 312 pence per share, representing a 76% premium to the company’s closing price of 177.50p on 13th June, the day before the approach was made.

Crimson Tide’s share price stands at 252p at the time of writing (8am).

In 2022, compliance software firm Ideagen – headquartered in Nottingham – was taken over by London-based private equity firm Hg Pooled Management following 12 consecutive years of growth.

Ideagen has until 5pm on 19th July to confirm its intention to make an offer, or confirm that it will not make an offer.

Listed FinTech fund invests £2.6m into LoopFX