Shareholders in one of the London market’s biggest advertising technology companies are demanding that its board kicks off talks with potential buyers amid frustration at its sluggish stock price performance.

Sky News has learnt that at least two institutional investors in Tremor have told its chairman, Chris Stibbs, that they want him to launch an immediate strategic review.

They are also demanding the company use some of the hundreds of millions of dollars in cash on its balance sheet to buy back stock.

The identity of the shareholders was unclear on Monday, but one City source said they were among the largest holders of Tremor stock.

Tremor, which is run by chief executive Ofer Druker, has reported a strong operating performance in recent months, but its shares have been unresponsive to recent upgrades to broker forecasts.

The company provides digital advertising solutions to clients such as Amazon, Disney and Twitter.

Another insider said that Tremor had recently held initial conversations with a major US-based private equity firm about a potential takeover bid, and that it had recently signed a non-disclosure agreement with that party.

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Shares in Tremor were trading on Monday afternoon at about 572p, giving it a market value of £938m.

Investors are likely to press for any bid for the company to be at a substantial premium to that level.

A Tremor spokesman declined to comment.

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