With the news a couple of days ago that Wasp Management Software, the Lloyds TSB Development Capital (LDC) MBO vehicle, has secured over 90% of its shares, WorkPlace Software will be the third AIM-listed software and IT services player to delist in 2012, following Parseq and Clarity Commerce.
To be frank, the decision must have been a no-brainer for investors, with the MBO team offering an 80% premium to buy the company at 25p per share. WorkPlace’s shares had been bouncing around the 15p mark pretty much all through 2011. LDC will need to throw in more dosh afterwards to accelerate the development and marketing of WorkPlace’s SaaS-based workforce management product (see PE LDC moves to acquire WorkPlace Software).
It would be premature to surmise that the trickle of AIM exits presages a flood, but I think we can at least expect a steady flow. A recent report from accountancy firm UHY Hacker Young counted 24 AIM exits in Q4 last year, vs 16 new listings, with seven of the ‘dearly departed’ citing financial stress as the cause. It costs around £250k p.a. to maintain a listing on London’s junior market, which is of course a significant cost for small companies.
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