The Infomedia Limited (ASX: IFM) share price is plunging on Thursday after the company announced the highest bidder has dropped out of the multi-horse race to acquire it.
United States-based technology investment firm Battery Ventures has withdrawn its $1.75 per share bid.
At the time of writing, the Infomedia share price is $1.60, 5.04% lower than its previous close.
Let's take a look at the latest news from the automotive industry software-as-a-service (SaaS) provider.
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Infomedia share price falls as Battery Ventures walks
The Infomedia share price is tumbling on news that one of the three parties lined up to take over the company has dropped out of the race.
And not just any of the three – Battery Ventures was the highest bidder.
Its $1.75 per share offer was notably higher than those posed by TA Associates and Viburnum (TA Consortium) and Solera Holdings (Solera). Both of these remaining interested parties have offered just $1.70 per share.
In other news, the company's board has granted Solera and TA Consortium preliminary due diligence material and access to management. It has also committed to continuing discussions with the potential acquirers to help move their proposals towards binding offers.
The Infomedia share price launched 28.5% in mid-May when TA Consortium put forward its interest in snapping up the company.
The stock surged once more later that month when Battery Ventures jumped on the bandwagon.
Solera, meanwhile, didn't announce its interest until mid-June.
Both TA Consortium and Solera's offers are payable in cash. They're also subject to several conditions, including due diligence and shareholder approval.
Share price snapshot
Fortunately, today's fall hasn't been enough to send the Infomedia share price into the long-term red.
The stock is currently 4.5% higher than it was at the start of 2022.
It's also trading for 9.5% more than it was this time last year.
