A transatlantic corporate courtship has come to a screeching halt. Less than four weeks after Bain Capital hinted at acquiring Scottish healthcare software maker Craneware, the private equity titan backed out of a potential $1.3 billion deal on Wednesday, sending ripples through the tech and investment communities.
In a brief but telling statement filed with the London Stock Exchange, Bain confirmed it would not move forward with a formal offer. The announcement puts to rest the speculation ignited by Bain’s May 16 notice that it was “assessing a possible offer” to scoop up all of Craneware’s shares.
Deal Breakdown: A Bid Rejected at the Gate
Craneware quickly followed with its own declaration, dropping a bombshell: it had already rejected Bain’s proposal, which pegged the company’s value at £26.50 per share, or nearly $1.3 billion based on its outstanding shares.
“The board believes that the proposal received from Bain is not in the best interest of shareholders,” Craneware said, arguing the bid “fundamentally undervalues Craneware and its prospects.”
The board further emphasized that it remained “fully confident” in the company’s ongoing strategy and long-term ability to deliver substantial shareholder value.
