Sheffield-based software and hardware firm Servelec said late on Thursday a £224 million cash takeover offer from Montagu Private Equity for Servelec had so far received support from 39.3% of its shareholders after Invesco Asset Management Ltd pledged its 6.5% stake.

Earlier on Thursday, Servelec said its directors agreed to recommend the takeover offer from Scarlet Bidco Ltd, a new company held by Montagu Private Equity.

Under terms of the offer, Servelec shareholders would receive 313.1p per share in cash, a 20% premium to the closing price on Wednesday.

However, Servelec’s share price has risen above the offer price, and analysts said a rival bid may emerge.

Servelec said the offer will be put to shareholders at a general meeting and it must be approved by at least 75% of the shares voted.

Servelec chairman Richard Last said: “Servelec group has made good progress in the four years since its initial public offering, growing both organically and through acquisition.

“The offer from Montagu represents an attractive and certain value, in cash, today for our shareholders.

“Investors who invested at the IPO will have achieved a total return of approximately 185% on that investment, including dividends.

“We are pleased that Montagu will continue to support the ongoing organic and acquisitive growth strategy in place.

“I would like to take this opportunity to thank all the employees at Servelec group for all their hard work and support.”