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Crimson Tide PLC on Tuesday agreed to an all-share takeover by Checkit PLC worth £6.5 million, months after the latter walked away. Under the terms of the merger, each Crimson Tide shareholder would receive six Checkit shares for each Crimson Tide share. Shares in Crimson Tide, the Kent, England-based software developer and provider of the mpro5 solution, fell 9.5% to 95.00 pence in London on Tuesday morning. It has a market capitalisation of £6.3 million. Shares in Checkit, the Cambridge, England-based workflow management software provider, were down 4.6% to 15.75 pence. It is worth £17.0 million. Crimson Tide shareholders would hold 27% of the enlarged group. Based on Checkit’s closing price of 16.50 pence on Monday, the exchange ratio represents an implied value of 99.00 pence per Crimson Tide share and values Crimson Tide at around £6.5 million. Checkit said it has considered for a long time that there are ‘compelling strategic and financial reasons’ for a combination with Crimson Tide and has engaged in discussions over the last four years. ‘The boards of Checkit and Crimson Tide believe that the combination of their companies presents a compelling strategic opportunity to create a market leader in workflow software solutions, also providing a boost to Checkit’s own strategic objectives and a range of benefits to all shareholders of the combined group,’ a statement read Checkit walked away from a potential takeover offer in June. It made an all-share approach, but noted at the time that it had been ‘unequivocally rejected’. At the time, that tilt would have Crimson Tide at £12 million. Under the terms of that all-share proposal, Checkit would have offered seven shares for every one held in Crimson Tide. Since June 3, the day before the approach, Checkit shares have fallen more than 30%. It then made another approach, upping the ante to nine shares, though that was also rebuffed by Crimson Tide. Crimson Tide in June also disclosed it received a competing proposal from Ideagen, valuing Crimson Tide at 312 pence per share. That cash bid valued Crimson Tide at around £21 million. Ideagen in July also walked away. After that, Crimson Tide and Checkit ‘re-engaged in discussions’. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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