Computer consultancy and software company Trace Group Plc has accepted a management buy-out bid from Tulip Holdings Limited, a company formed by Trace and Trace subsidiary directors for the purposes of implementing the proposals. 

The offer of 135p per share in cash values Trace at approximately £20m, and represents a premium of 50.8 per cent above the closing price of 89.5p per share on 19 April 2007, the last business day prior to the announcement. 

Established in 1974, Trace Group plc specialises in business software solutions for the financial, insurance, reinsurance and property markets and provides payroll services. Trace also operates a specialist permanent and contract recruitment agency. 

Commenting on the offer, Daniel Chapchal, Chairman of Trace, said “We are pleased to have agreed terms with the management and believe that the recommended cash offer of 135p per share represents a significant premium for Shareholders.”