The U-turn comes less than 24 hours after the firm announced its fundraising plans.

Craneware, which works predominantly in the US healthcare market, issued an update yesterday which said: “Despite the successful launch of the accelerated bookbuild and a strong oversubscription for approximately £83m from new and existing investors at a price per share of 1550p, the board has decided that it would be in the best interests of the company and its shareholders not to proceed with the placing.”

The firm confirmed that the placing agreement has been terminated.

Craneware added that the decision had been taken following the news in the US overnight that the company’s proposed primary acquisition target has agreed acquisition terms with a third party.

This means that “certain conditions set out in the placing agreement would not have been able to be satisfied.”