Scottish software firm Craneware has rejected a takeover proposal by private investment group Bain Capital after claims that the tentative bid ‘fundamentally’ undervalued the company.

Bain Capital had offered £26.50 per share for Edinburgh-based Craneware, valuing the firm at close to £940 million, a more than 29% premium to its closing price on 15 May, the day before Bain’s interest initially became public and shares surged.

Rejecting the offer, Craneware said that the proposal was ‘not in the best interests’ of its shareholders, and neglected to consider the value of the company’s ongoing prospects.

“The Board is fully confident in the ongoing execution of Craneware’s strategy and that its continued successful delivery will create significant value for shareholders.

“The Board believes the company’s share price performance over the last 12 months is not reflective of the company’s trading performance and the continued improving prospects of the business, instead reflecting non-Craneware specific market factors.”

Stressing its point, the software company said that trading in the year to 30 June 2025 had been strong, with continued growth in revenue.

Bain, meanwhile, separately confirmed that it would not be progressing with its takeover bid, with the news causing shares in Craneware to dip slightly this morning (11th June), falling 1% to £19.85 per share.  

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The private investment firm had given Craneware up to the 13th of June to accept its approach, with the hope of adding the Scottish company to its vast global portfolio, which already counts investments among the likes of Kantar, Esure, and European digital services firm Inetum.

Craneware, founded in 1999 by current CEO Keith Neilson and Gordon Craig, specialises in providing software and admin solutions for the US health industry.

According to analysis from Reuters, the company’s value most recently took a hit in April following President Trump’s ‘Liberation Day’ tariff announcements, with its shares falling to a one-and-a-half-year low.