Healthcare firm cancels shares issue
Craneware withdraws £83m placing for acquisition
Keith Neilson: withdrawn (pic: Terry Murden)
Healthcare software developer Craneware has reversed its plan announced last night to raise capital for a planned acquistion.
The Edinburgh-based company said in a statement this morning that its target had agreed terms with a third party and the proposed placing had been terminated.
“Despite the successful launch of the accelerated bookbuild and a strong oversubscription for approximately £83m from new and existing investors at a price per share of 1550p, 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,” ir said.
“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.”
The firm, whose business is entirely in North America, said last night in a statement after the market closed that it had identified a “small number” of takeover targets which it said would expand the firm’s US customer base.
It would also add new proprietary technologies and scale up the business.