Craneware has abandoned its planned £80 million share placing after its primary takeover target in the US agreed to sell to a rival.
The Edinburgh firm which supplies resource management software to major US healthcare providers had launched an accelerated bookbuild late on Tuesday.
It said it was raising the cash after identifying more than one potential acquisition, one of which was already actively seeking a buyer.
Craneware's new share placing - which would have represented 20% of its share capital - was oversubscribed at around £83 million at 550p a per share.
The firm said this morning: "The Board has decided that it would be in the best interests of the Company and its shareholders not to proceed with the Placing and the Placing Agreement has been terminated.
"This decision has been taken following news in the US overnight that the Company's proposed primary acquisition target has agreed acquisition terms with a third party, meaning certain conditions set out in the Placing Agreement would not have been able to be satisfied.
"Capitalised terms used in this announcement have the meanings given to them in the Placing Announcement, unless the context provides otherwise."
