Edinburgh’s Craneware terminates plan to raise £80m as takeover falls through
Craneware, the Edinburgh-headquartered software firm working predominantly in the US healthcare market, has reversed its plans announced less than 24 hours earlier to raise more than £80 million.
The group told investors that a planned acquisition target in the US had now agreed takeover terms with a third party.
Craneware had been looking to raise the substantial funds having identified “specific potential acquisitions that offer the opportunity to accelerate the progress of the company”.
In an update to the stock market, the firm said: “Despite the successful launch of the accelerated bookbuild and a strong oversubscription for approximately £83m from new and existing investors… the board has decided that it would be in the best interests of the company and its shareholders not to proceed with the placing and the placing agreement has been terminated.
“This decision has been taken following news in the US overnight that the company’s proposed primary acquisition target has agreed acquisition terms with a third party, meaning certain conditions set out in the placing agreement would not have been able to be satisfied.”
Last month, the firm said it was “strongly placed” to deal with the future impacts of the Covid-19 pandemic as it flagged steady full-year sales.
In a trading update, the group, which reports in dollars, said it expects to report total revenue for the year to 30 June of about $71.4m (£57m), which would match the previous year’s outcome, and adjusted underlying earnings of $24.5m, sightly up on $24m the year before.
Chief executive Keith Neilson added: “We continue to look to the future with high levels of optimism in the resilience of the company.”
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