Checkit PLC (AIM:CKT), the operational intelligence software platform, surged 28% to 18.19p after the company announced it has launched a formal sale process following six unsolicited approaches from potential acquirers over the past nine months.
The board said it had determined a sale represented the best course of action for shareholders, citing a significant disconnect between the company's improving operational performance and its current valuation on AIM.
Checkit's shares currently trade at an enterprise value of approximately 1.0 times its annual recurring revenue (ARR), a multiple the board believes materially undervalues the business relative to comparable private market transactions for subscription-led software platforms.
The company said interested parties include both private equity sponsors and strategic acquirers, and that the formal process, governed by the Takeover Code, would widen the pool of potential bidders and provide a framework for maximising shareholder value.
Checkit provides connected hardware and software solutions for enterprise customers operating across complex, regulated, multi-site environments, with operations in the UK, US, Ireland, Australia, New Zealand and continental Europe.
The board argued that under private ownership, the removal of public company costs, greater investment in growth, and potential revenue synergies within a larger organisation could support substantial value creation not currently reflected in its market valuation.
The process is being managed alongside Singer Capital Markets, the company's nominated adviser and broker.
No firm offer has been made and shareholders are advised to take no action at this time.