Lingering speculation that accounting software group Coda would be of interest to buyers came to fruition this morning as the business revealed that it had received an indicative approach from Agresso of 205p per share.
The approach, which came in a week before Christmas, is now going through advanced stages of due diligence. Coda shares were trading 24% higher at 195p following the bid news, valuing the business at roughly £150.1m.
Should a deal go ahead, the new business will have annual revenues of €300m (£227m) and operate in 19 countries.
Coda made the announcement as it released a trading update for the year ended 31 December 2007. Coda said revenues were ahead of management expectations and that cash balances at the period had increase from £1.8m a year ago to £12.8m.
Demand for Coda products remained strong and the business had made regular contract wins during 2007.
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