Microgen looks at going under the hammer

BUSINESS software group Microgen has launched a strategic review that it said may lead to the firm being put up for sale.

The company, which has been listed on the London Stock Exchange for 30 years, said yesterday it was frustrated at the difficulties it has experienced trying to take on its much bigger competitors.

“Microgen is constrained as a result of being a small, independent public company,” the firm said. “As a provider of enterprise solutions in a risk-averse market environment, the size of the group can be an inhibitor given the very large enterprise software companies with which [it] typically competes.

“The strategic review will be wide-ranging and may, or may not, result in the disposal of one or both of the operating divisions,” Microgen added, although it said that it could easily carry on as an independent company.

The company’s shares rose more than nine per cent on the news as investors anticipated a payday.