ThirdForce, which owns the e-learning group Electric Paper, says it is having talks on the acquisition of a private company in what it calls 'a complementary business'.
It is understood the acquisition target is based in Ireland, but the deal is not of a scale that would require shareholder approval.
ThirdForce has previously stated it plans to grow through acquisition and is understood to be exploring a number of opportunities.
Today's statement was issued following a sharp increase in the company's share price which is thought to have been driven by positive media coverage last week, and by stockbrokers' encouraging private clients to invest in the company.
The price has almost doubled in the past week, gaining 12 cent to 44 cent yesterday. It fell back four to 40 cent today.
