Craneware facing possible offer from Bain Capital – Daily Business

Bain Capital Private Equity has confirmed that it may launch a takeover offer for Edinburgh-based software company Craneware.

The announcement to the stock exchange prompted AIM-quoted Craneware’s stock to jump 12% to 2290p valuing the company at about £800 million as speculation mounted of rival bids.

Craneware’s head office is in Canon Mills, but all of its business is in the US healthcare market, providing software packages to improve operational efficiency.

Bain said it had noted the recent share price movement for Craneware, and “speculation” about a potential offer.

“Bain Capital confirms that the Bain Capital Funds are assessing a possible offer to acquire the issued and to be issued share capital of Craneware,” the US firm said.

“This evaluation is highly preliminary in nature, and has not to date involved any approach to the board of Craneware.”

Bain said it has until 5pm on 13 June to either announce a firm intention to make an offer or confirm that it does not intend to make one.

Analysts at Panmure Liberum said: “This evaluation is highly preliminary in nature and has not to date involved any approach to the board.

‘So, this is a bit unusual in terms of the stage of any discussions. However, we have argued for some time that Craneware is a bid target as it would be an attractive way to buy a strongly positioned US healthcare software provider.

“We think there could be several interested parties if this was to proceed. We believe our target price of 2750p is sensible given the growth and margin potential of the business, plus other relevant transactions. While this is clearly very early in any process, we retain our Buy rating and 2750p target price.”