NCipher reports bid approach

NCipher reports bid approach

Shares in nCipher soared in morning trading after the UK encryption technology vendor said it has received "a number of preliminary approaches" for its business.

The stock was up 54.75 pence, or 43.37% to 181.00 pence in mid morning trading to, having earlier risen as high as 158.00 pence, after the vendor issued a statement in response to press speculation about a takeover of the firm.

In the statement Cambridge-based nCipher says one or more of the approaches "may or may not lead to an offer or offers being made for the entire issued and to be issued share capital of the company".

The vendor adds that there is "no certainty that any offer will be made".

NCipher stock took a hit last month and fell to a year low of 123.50 pence after vendor warned that in calendar 2008, profits will be "substantially reduced by the investment needed to ensure a strong foundation for scalable future growth of both sales and profits".

But on a more positive note the firm did report a full year pre-tax profit of £3.4 million compared to a loss of £4.7 million for the previous year. Full year revenue also rose 15% to £24.2 million.

This is not the first time that nCipher has been involved in a takeover offer. In February 2006 US IT security company SafeNet made a cash offer of 300 pence per share for the business, but the bid was later abandoned after the proposed acquisition was referred to the UK's Competition Commission.

Comments: (0)