6th Nov 2018 11:43
LONDON (Alliance News) - Elecosoft PLC on Tuesday said it raised GBP2.3 million via a share placing as it agreed to acquire Active Online GmbH for GBP3.0 million in cash and shares.
The construction software developer said it also will pay a potential bonus of up to EUR400,000 dependent on the attainment of performance and financial targets in the three years following completion of the transaction.
The company said it will pay GBP2.6 million in cash to all sellers of Active Online and GBP400,000 via the issue of shares to the two founders of Active Online.
Elecosoft said it will issue 597,004 shares at a price of 73.55p each, being the average closing price in the five days from Monday to Friday last week.
In addition, the company said it placed 3.2 million shares at a price of 70 pence each to raise cash. The placing price represents a discount of 3.4% to the closing mid-market price of shares on Monday.
The stock was trading 0.7% lower on the day Tuesday at 72.00p per share.
Elecosoft said it intends to use the proceeds of the placing to accelerate the integration of Active Online, and the continued enhancement and development of its software technologies.
German-based Active Online is a software business, which provides visualisation of different materials, colours and styles in photographic room scenes. It generated revenue of EUR2.5 million in 2017 and pretax profit of EUR124,000.
Elecosoft expects the acquisition to be earnings enhancing within its first full financial year.
"When we make acquisitions, we look closely at the quality and flair of the management and people involved, at the technology and quality of the software, and at the potential opportunities for collaboration with companies in the Elecosoft group," explained Executive Chairman John Ketteley.
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