Struggling systems integrator Radius is to be bought out by its management team in a desperate move to put the company back on an even keel.
The Hull-based company has found its white knight in the guise of Sudiar, a company formed by the management team and external venture capitalists.
The deal follows a long period of erratic share movement, reaching a low of 26.5p this year. The management buyout cash offer of 55p per share has prompted shares to soar to a high of 52.5p. Once the buyout is completed, the company will be privately held.
Radius' erratic movement on the Stock Exchange is largely due to behind the scenes politics among the board of directors and an income that has steadily fallen over the past three years.
Profit for the year ending December 1996 was #1.59 million, while for the same period last year, it dropped to #1.12 million.
The company was also the subject of an attempted takeover bid by one of its founders, Edward Sharp.
Sharp failed to oust the board of directors by way of a vote of no confidence, when shareholders rejected his proposal.
The failure led to his resignation as a non-executive director on 17 February, after holding the post since 1991.
Despite the company's troubles, Radius had managed to secure some lucrative deals prior to the MBO disclosure. Its retail arm was to overhaul systems in 295 Homestyle and Fads stores, a deal worth #1.25 million.
It also secured a #500,000 deal to overhaul financial systems for Lancaster City Council, Malvern Hills and Wychavon District Councils on 18 June.
But Radius had lost significant contracts during 1997 and never fully recovered.
Radius declined to comment.
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