Brainspark, the troubled UK internet incubator, has finally secured a firm offer for its ailing assets, from AI Software, the Italian internet software firm, in an all cash offer valuing the company at £5.2m (€8.6m), just over 3% of its value at the height of the internet boom.

The Italian firm has offered 4.25p per Brainspark share, a premium of over 21% to the closing market price of 3.50p on December 27, the day before the bid was announced. At its peak shortly after its float in April 2000, Brainspark shares reached 132.5p, valuing the firm at £154m .