Shares in fallen technology star Baltimore Technologies surged 38 per cent this afternoon after the company announced it was putting itself up for sale.
The company said it is seeking a strategic partner through what the company describes as a "controlled sale process."
Baltimore's chairman Mr Peter Morgan told shareholders at the acompany's AGM today that a sale would be the best way to protect the interests of shareholders, customers and employees. Offers for the company close on June 30th.
Baltimore shares surged 10p to 36p in London immediately after the sale plan was announced.
Mr Bijan Khezri, Baltimore's chief executive, told shareholders that revenues for the second quarter are anticipated to be better than in the first quarter and cash burn is the lowest since 2000.
Baltimore, once a FTSE-100 company, holds £15.6 million in cash, not including £2 million to £3 million due in the next six months from earlier divestments, Mr Khezri said.
Baltimore was once a darling of the stockmarket when the tech bubble was at its most bloated. The company's boasted a market capitalisation of over £5 billion and its shares traded at £120.
But the company which makes security and encryption software suffered a humbling fall from grace in the aftermath of the tech bust. An aggressive expansion strategy coupled with some ill-judged acquisitions left the company vulnerable in the IT downturn.
Since the departure of founder and chief executive Mr Fran Rooney the company put the knife to its cost base. Overseas offices were shut, non-core products sold and the workforce reduced from a peak of 1200 in 2001 to around 270 today.
JP Morgan have been appointed advisers for the sale.