19th Mar 2025 12:20
(Alliance News) - Crimson Tide PLC on Wednesday said shareholders have voted down its proposed merger with Checkit PLC.
The GBP6.5 million deal was agreed in February between the Kent, England-based software developer and provider of the mpro5 solution and the Cambridge, England-based workflow management software provider, Checkit.
The voting results at the General Meeting show 51.32% of shareholders voted against the merger, compared to 48.68% in favour.
Crimson Chair Jacqueline Daniell commented:
"Whilst this result is regrettable the Board respects the outcome of the Scheme process. We now look forward to moving the business forward and will update shareholders regarding FY24 and current trading at the Company's next results, expected during April 2025."
Pursuant to the Takeover Code, Checkit is now prohibited from making any offer for Crimson Tide for 12 months.
In February, Checkit said it had long considered "compelling strategic and financial reasons" for a combination with Crimson Tide and 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 at the time.
Crimson Tide shares traded 2.6% higher at 69.25 pence on Wednesday afternoon in London. Checkit shares were up 5.2% at 14.20 pence.
By Aidan Lane, Alliance News reporter
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