Checkit Offer update and receipt of possible cash offer from Ideagen
LONDON, UK: Checkit Plc, the augmented workflow and smart sensor automation company for frontline workers, has approached board of Crimson Tide offering to acquire the entire issued and to be issued share capital of Crimson Tide.
Under the terms of the possible offer, each Crimson Tide share would receive 7 Checkit shares.
Based on Checkit’s middle market closing price of 26 pence per Checkit share on 3 June 2024 values each Crimson Tide share at 182 pence; values the entire issued ordinary share capital of Crimson Tide at approximately £12 million.
The offer represents a premium of approximately 12 per cent to the middle market closing price of 162.5 pence per Crimson Tide share on 3 June 2024.
The board of directors of Checkit Plc believes that the combination of Crimson Tide and Checkit presents a compelling strategic opportunity to create a scaled workflow software company and furthermore believes that a company of this increased scale would present a more attractive investment opportunity for all shareholders than either business as a standalone entity.
The Checkit Board believes that this, along with the significant potential revenue and cost synergies identified by Checkit, could result in the enlarged company attracting a wider pool of investors and consequently being attributed higher valuation multiples by the market than either standalone company could reasonably expect to command.
A broader investor base could reasonably be expected to increase liquidity for existing and potential new investors. The Checkit Board therefore believes that the Possible Offer would be in the best interest of both companies’ respective shareholders and could enhance value for both sets of shareholders.
The Checkit Board has for a long time considered there to be compelling strategic and financial reasons for a business combination of Checkit with Crimson Tide and has at various times over the last four years sought to engage in constructive discussions with the Crimson Tide Board, but those discussions have never progressed.
Kit Kyte, Chief Executive Officer of Checkit, commented: “The Checkit Board has long believed that the combination of Checkit and Crimson Tide is an obvious and positive strategic step for both companies. We believe it will position the enlarged entity as a market leader in workflow software solutions, leveraging the strengths of both organisations for enhanced profitability and competitive advantage whilst being more attractive to existing and potential new investors. Most importantly, the Checkit Board believes that the combination of the two businesses has the potential to deliver value for both sets of shareholders.
“Checkit’s stable management team and the Checkit Board has a track record of successfully integrating acquired businesses. I look forward to presenting the strategic rationale and benefits of this potential combination to Checkit and Crimson Tide shareholders.”
Crimson Tide is the provider of mpro5, the process management app. mpro5 is delivered on all modern devices and enables organisations to digitally transform their business and strengthen their workforce by smart mobile working. mpro5 is hosted in the cloud on Microsoft Azure. Crimson Tide’s contracts are provided on a long term, contracted subscription basis and clients can immediately experience a return on their investment.
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