Freecom.net last month trumped a £30 million offer from Australian software group Solution 6 with a £45.8 million bid.
Last week software supplier Electronic Data Processing also said it was considering making a bid.
Sage has also indicated that it may be interested in buying Pegasus.
But today’s 796p-a-share offer by Freecom has been recommended by Pegasus.
Jonathan Hubbard-Ford, chief executive of Pegasus said: ‘We believe this revised offer fairly values Pegasus and we look forward to the opportunity to build on both companies’ e-commerce strengths to create a powerful force in the SME sector.’
Freecom.net forces Sage out of the running for Pegasus with all-share bid