Lynx Holdings has pulled out of takeover talks with Kalamazoo Group, paving the way for US software house Automatic Data Processing (ADP) to pick up the group.
In a statement, Lynx said it was ?disappointed at the slow rate of progress? of the talks, but refused to comment.
Kalamazoo confirmed that its board had received a number of approaches and stated: ?Kalamazoo continues to hold discussions which may or may not lead to an offer being made for the entire issued share capital of Kalamazoo.?
Lynx?s concerns about the status of shares owned by Kalamazoo Trust, set up by the company?s Quaker founders to benefit employees, are understood to be partly responsible for Lynx pulling out.
ADP is now the favourite to acquire Kalamazoo. At the beginning of June, ADP UK operations director Dave Smith said it was looking to buy UK dealerships in vertical markets. ADP refused to comment this week.
Kalamazoo?s stock closed down 3.5p at 84p per share on 19 June, valuing the company at #41 million. Shares in Lynx rose 1.5p to close at 102.5p.
Two weeks ago, Kalamazoo revealed that it was involved in talks with Lynx Holdings, the parent of distributor of Sphinx CST and Lynx. But Lynx was understood to be interested in only the computer services arm of the business and planned to sell off the print division (PC Dealer, 11 June).
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