11th Jul 2019 10:21
(Alliance News) - Mobile diagnostics firm Blancco Technology Group PLC has raised GBP10 million, it said Thursday, to partly fund a new acquisition.
Blancco placed 8.0 million new shares at a price of 125 pence each, a 2.0% discount to its closing price of 127.5p on Wednesday in London.
Shares in Blancco Technology were up 5.1% at 134.00p each on Thursday morning.
The funding will be used partly to pay for YouGetItBack Ltd, which trades as Inhance Technology. The rest will be used to refinance some capital expenditure and repay debt.
Inhance has been bought by Blancco for EUR5.3 million, of which EUR3.3 million will be in cash and the rest in Blancco shares.
Inhance was set up in 2005 in Cork, and was initially focused on security tagging software but has now also moved into mobile diagnostics. Revenue in 2018 was EUR1.2 million, with an operating loss of EUR1.0 million.
On the trading front, Blancco said things are going well, and profit for its year ended June is set to beat market consensus due to a better mix of high-growth margin revenue and some delay in cost impacts from investments made.
Blancco has also paid USD1.5 million to ZroBlack, it said, for ZroBlack to work alongside Blancco to further develop some intellectual property. Up to April 2022, 15% of revenue from products that use the ZroBlack technology will go to ZroBlack.
Chief Executive Matt Jones said: "Blancco is well placed in each of its target markets: Mobile, Enterprise and ITAD. The acquisition of Inhance and the development of the IP relating to the ZroBlack consulting agreement provides Blancco with a full suite of products for diagnostic and erasure solutions in the mobile sector and places the Group in a position to cement its position as a market leader.
"We are confident the initiatives that we have laid out today will make a meaningful contribution to Blancco's future growth, further accelerating rates of revenue and profit growth, over and above those increases that we have announced today and earlier this year."
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