Shares in Crimson Tide plc jumped 46% in a matter of hours today after it revealed a potential £20.5 million takeover approach from Ideagen.

Meanwhile Crimson Tide, which appointed a new CEO in May, said it had rejected a second improved approach from Checkit plc.

Headquartered in Tunbridge Wells, Kent, Crimson Tide 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 260p at close of trading on Friday 21st June.

 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.

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Checkit plc, an augmented workflow and smart sensor automation company for frontline workers, improved its hostile offer from seven Checkit shares per Crimson Tide share – valuing the business at £12m – to nine.

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

“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.”

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

Checkit has until 5pm on 2nd July to do the same.

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