Tide turns as Checkit and Crimson Tide agree merger

AIM-listed Checkit Plc, whose platform innovates operations across medical and commercial industries, will acquire the entire issued and to be issued share capital of Crimson Tide. The deal values the entire issued share capital of Crimson Tide at around £6.5 million.

The Boards believe that the combination of the companies presents a compelling strategic opportunity to create a market leader in workflow software solutions. While the dial barely moved on Checkit’s share price, which was hovering ominously close to the 52-week low despite the news, the merger would appear to offer growth potential.

The deal looked a non-starter when it was thought Ideagen intended to make an offer for Crimson Tide but no bid materialised – paving the way for Checkit to move in.

Checkit’s revenue for the year ended January 31 was £14m – up from £12m year-on-year. Checkit CEO Kit Kyte will remain in that role after the merger and Jacqueline Daniell, Non-Executive Chairman of Crimson Tide, will join the Checkit Board as a Non-Executive Director.

The other NEDs of Crimson Tide would be expected to resign once the merger is completed. Its executive directors will be appointed to senior management roles within the combined group.

Crimson Tide’s interim results for the six months to June 30, 2024 showed revenue up 3.3 per cent to £3.14m and the company says it will continue to develop and invest in the core mpro5 product; the Board is confident in the product’s competitive advantage and market readiness. Integrating with IoT sensors (such as temperature, or humidity) mpro5 provides customers with a strong data foundation – enabling them to make informed and actionable decisions about their day to day operations.

Crimson Tide is trusted by businesses across a broad variety of verticals including facilities management, transportation, catering, retail and healthcare estates and is deployed in over 260,000 sites in 11 countries.