UK IT services firm Microgen says it has agreed terms of an increased recommended cash offer of 180 pence-per-share for banking and securities software vendor Trace Group.
Microgen has raised its offer from a previous 155 pence-per-share proposal made on 1st June.
Trace said on 20 April that it had agreed a 135 pence-per-share takeover bid from management buyout vehicle Tulip Holdings. But shortly afterwards Microgen disclosed that was in talks about a counter offer for the vendor and followed up with the 155 pence-per-share bid.
Tulip came back with an increased bid of 156 pence-per-share, but Microgen has trumped that offer with its new 180 pence-per-share bid.
The latest Microgen offer represents a premium of approximately 101.1% to Trace's closing price of 89.5 pence on 19 April - the day before the first Tulip bid was disclosed.
The bid is 14% higher than Tulip's second offer and values the Trace business at £25.6 million.
Microgen says it currently holds around 24.95% of Trace Group and has received an irrevocable undertaking from Herald Investment Management Limited, which has a 7.92 holding in Trace, to accept the new cash offer.
In morning trading Trace shares surged 14.52% to 177.50 pence on news of Microgen's revised offer.