25th Jul 2018 11:21
LONDON (Alliance News) - APC Technology Group PLC said on Wednesday it will acquire radio frequency and microwave distribution business Aspen Electronics Ltd for GBP2.2 million, funded through cash and shares.
The company also said that it will raise GBP2.5 million through a placing and subscription of 37.6 million shares at a price of 6.75 pence per share. The issue price reflects a 2% premium to the closing price of 6.625p on Tuesday.
Shares in the electronic components designer were up 5.1% at 6.96p on Wednesday.
Proceeds from the fundraise will go towards funding the cash element of Aspen Electronics acquisition, repayment of loan notes and for working capital purposes. Stockdale Securities is acting as financial adviser and broker to APC Technology.
The total consideration for acquiring Aspen Electronics is GBP3.2 million, however, the business has GBP1 million on its balance sheet that will be distributed to the vendors of Aspen, taking the deal price down to GBP2.2 million.
APC Technology will pay GBP1.7 million in cash and the remaining GBP500,000 by the issue of 7.4 million shares for Aspen Electronics.
The acquisition is expected to be earning enhancing in the first full-year of completion, and will complement APC's existing Components business.
"We are delighted to have been able to complete the acquisition of such a premium-quality, complementary RF and Microwave business which has an excellent reputation and which is expected to lead to top line growth opportunities as part of the enlarged APC group. APC continues to trade in line with management expectations and we expect this acquisition to be earnings enhancing in its first full financial year," said Chief Executive Richard Hodgson.
APC Technology will have 179.9 million shares issued overall following the issue.
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