Dealertrack in talks to acquire AIM auto software group Incadea

Automotive software services firm Incadea has attracted the interest of larger US peer Dealertrack Technologies, with the companies talking about a possible takeover of the AIM company.

The company, which provides services to car dealers and vehicle manufacturers, confirmed in a statement on Thursday that it was in discussions with Nasdaq-listed Dearlertrack "regarding a possible acquisition of the entire issued and to be issued share capital of Incadea".

"The making of any offer will be subject to various pre-conditions, including due diligence, and there can be no certainty that an offer will ultimately be forthcoming or the terms on which any offer might be made for the company," Incadea said.

Under the 'put up or shut up' rules of the City Code on Takeovers and Mergers, Dealertrack is required to either announce a firm intention to make an offer or step away by 17:00 on 1 January 2015.

Dealertrack, which provides web-based software for different areas of the automotive retail industry, said in a separate statement that discussions were "preliminary in nature".

Incadea's shares finished Thursday's session up 13.5% at 135p, valuing the company at just over £84m.