Payments software firm Eckoh is set to become the latest firm to leave the Aim market, after it announced it had received an offer from an unnamed private equity firm.
The offer, which values Eckoh at 54 p per share and was “highly conditional” and “non-binding”, follows a lengthy hunt for a suitor from the Aim-listed firm’s board that started towards the end of last year, it said in a statement to markets.
It added that discussions with other potential bidders “remained ongoing” and that the private equity firm that has tabled an offer does not need to be named by Eckoh as it has not been revealed in any press speculation.
A significant rally in Eckoh’s share price in the past four days prompted the announcement.
Having fluctuated between 32p and 43p for much of the year, since August 9 shares in the software firm have jumped 18.5 per cent to 49.6p – their highest price in over two years.
The offer comes off the back of a record year to date for Eckoh, which makes and sells software that helps secure customers’ payment details.
In the year to March 31, total contracted business rose by 52 per cent to £52.6m thanks to particularly impressive inroads in North America, having deployed a new strategy for the continent for 2024.
The firm had signed a record level of contract, new business and client renewals in the first quarter, prompting chief executive Nick Philpot to brand the results a “milestone”.
Should the bid be accepted, Eckoh would become the latest in a long line of Aim-listed firms to opt to leave the growth company market.
At least 40 firms – including high street chocolatier Hotel Chocolat and nightclub and bar owner Nightcap – have decided to leave Aim in 2024 alone, citing the burdensome administrative costs, languid share prices and difficult capital raising environment.
Eckoh’s board said the firm’s “share price did not reflect the fundamental value of the business”, meaning had begun “to consider alternative options to realise value for shareholders” last year.
The firm added: “It is important to note that while due diligence is progressing, there can be no certainty at this time whether any offer will be made, nor as to the terms of any such offer.”