Ateliere Creative Technologies has axed plans to acquire CodeMill, a Swedish-based provider of media workflow software solutions, in a deal worth more than SEK 313 million ($29 million).
Ateliere announced its intention to buy CodeMill at the start of March, describing the deal as “a pivotal response to industry disruption” and that it would create a “comprehensive, next generation, end-to-end media technology platform”.
However, it has now stated that “due to the current, unforeseen turbulence in the US and in the global business and financial markets” the company is no longer in a position to complete the offer.
Ateliere has instructed the issuing agent to release the tendered shares to CodeMill shareholders, added the company.
In its own statement, CodeMill accused Ateliere of violating the rules of the takeover, adding there was “no valid reason for Ateliere not to complete the offer”.
CodeMill said it had received supporting documents, including bank statements, showing that Ateliere “has sufficient financing for the implementation of the offer” and had also had written confirmation from Ateliere that the funds shown on the bank statements “will only be used to finance the offer”.
The Swedish company said it intends to report Ateliere to the Swedish Financial Supervisory Authority, added its board of directors is in discussion with the company’s owners over “other legal measures that may be taken against Ateliere”.
