Edinburgh firm Craneware rejects £1bn takeover approach
Craneware declared in the statement: 'The proposal was received without the parties entering into a due diligence process.
'The board is fully confident in the ongoing execution of Craneware's strategy and that its continued successful delivery will create significant value for shareholders. The board believes that the proposal received from Bain is not in the best interest of shareholders and is not consistent with the board's understanding of the objectives of shareholders.
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'The board believes the company's share price performance over the last 12 months is not reflective of the company's trading performance and the continued improving prospects of the business, instead reflecting non-Craneware specific market factors.
'The board confirms trading in the year to 30 June 2025 has been strong, with continued growth in revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation), and further earnings, ARR (annual recurring revenue) and NRR (net revenue retention) acceleration.'
Boston-based Bain said in its own statement to the stock market that it 'does not intend to make an offer for Craneware'.
Craneware emerged as a bid target for Bain on May 16, when the American investment outfit declared that it was 'assessing a possible offer' for the company. At the time, Bain was given until no later than 5pm on June 13 to announce a firm intention to make an offer or walk away.
Craneware designs and sells software to help improve the financial efficiency of the healthcare sector, with a focus on the US market. It reported record figures for the first half of its financial year in March, when Mr Keith Neilson declared he was 'very positive' about its prospects despite the political upheaval following the return of Donald Trump to the White House. Mr Neilson said at the time that the company's tools for improving efficiency in the healthcare sector were driving sales as hospitals refocused on "fundamentals" following the US presidential election.
Panmure Liberum said in a note for investors today: 'The 7.00am RNS that confirmed Bain were not going to make an offer was far less interesting than the 7.49am RNS from Craneware. Our initial thoughts focused on the highly preliminary nature of the May announcement, at that stage Bain had not even been in contact with the Board of Craneware.
'However, the later release today confirms that the Board had in fact rejected a 2,650p proposal. The board clearly believes the business fundamentals are improving, and the founder/CEO is the 2nd biggest shareholder. This is supported by the company confirming that revenue has continued to grow and earnings, ARR and NRR have accelerated further. We continue to see the company as a bid target despite today's news and retain our buy rating and 2,750p target price.'
Shares in Craneware closed…
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