Wealth management software provider Bravura Solutions has received a takeover offer of between 17.5 cents and 20 cents a share from an unnamed offshore party.

Bravura said it had received an incomplete, indicative and non-binding proposal to acquire all of the issued capital of Bravura by a scheme of arrangement.

The offer is at a 60 to 80 per cent premium to Bravura's closing price on Monday of 11 cents.

But the company has rejected the offer after discussions with the bidder, stating it undervalued the company.

"It is fair to say that the share price of Bravura is undervalued and with that the company is on the radar of potential suitors," Bravura chief executive Simon Woodfull said.

"We certainly weren't actively sourcing these opportunities," he said.

Woodfull said the discussions with the bidder had ended.

"We are not actively promoting any further discussions, so for all practical purposes the discussions are ceased," he said.

Although Woodfull was not in a position to disclose the bidding party, he did say it was not an Australian company.

"It is an offshore party and they certainly have a technology flavour," he said.

Woodfull said the bid did not reflect the recent improvement in the company's financial position.

"A lot of the fundamentals around our recurring profits and cashflows are strengthening quite considerably," Woodfull said.

"From a company perspective, we are a lot different from where we were in FY2010 to where we are looking [to be] in FY2011. We see that we are in very strong shape to seize further organic growth opportunities," he said.

Two weeks ago, Bravura reported its results for FY2010.

The company's underlying result, adjusted for the lumpy impact of license fees, improved from a loss of $10.1 million to a profit of $3 million. It also saw an improvement in operational cashflow.