9th Apr 2019 11:48
(Correcting the headline to clarify that Shearwater is buying certain assets of Secarma and not the entire company)
LONDON (Alliance News) - Shearwater Group PLC on Tuesday said it has entered into a share purchase agreement to acquire certain business and assets of cyber security testing services Secarma Ltd.
The company, which is focused on acquiring information security and cyber security companies, said certain assets of Secarma will be bought for GBP7.4 million, payable in shares.
Shearwater said it will issue 292.3 million shares at a price of 2.3 pence each to Secarma, covering GBP7.4 million of the total consideration. In addition, an unsecured loan note of GBP700,000 will be repaid to the vendors of Secarma in tranches on the first and third anniversary of completion of the acquisition.
The issue price represents a premium of 67% to the closing price of 1.38p per share as at Monday. Shearwater shares were trading 15% higher on Tuesday at 1.58p each, giving it a market capitalisation of GBP26.2 million.
Following the admission, the company will have 2.20 billion shares overall.
"We've looked at a number of opportunities in this sector and we're delighted to have secured a deal to purchase this business," said Shearwater Chair David Williams.
"The incoming team's industry expertise and considerable experience as well as market position will be very complementary to our services businesses and provides another key capability for the group as a whole," added Williams.
For the 12 months to the end of May 2018, Secarma generated revenue of GBP3.7 million, pretax profit of GBP120,000 and had gross tangible assets of GBP2.8 million.
Related Shares:
Shearwater