24th Apr 2014 10:51
LONDON (Alliance News) - GB Group PLC Thursday said it has raised GBP11 million in a share placing and has agreed to acquire Australian fraud detection and risk management company DecTech Solutions Pty Ltd for GBP20.5 million.
GB Group also raised its guidance, saying it now expects to report adjusted operating profit of around GBP7.2 million for the year ended March 31, ahead of GBP5.5 million in the previous year, as its results had outperformed market consensus.
As a result of organic and acquisitive growth, it now expects adjusted revenues for the year to be GBP41.8 million, up from GBP36.3 million.
The identity intelligence product company will pay GBP14.3 million in cash for DecTech, with an additional GBP6.2 million to follow in two tranches 12 and 24 months after the acquisition date, subject to DecTech meeting revenue and margin targets.
The initial payment will be funded through GBP5.4 million in debt and GBP8.9 million in existing cash and the proceeds of its share placing.
DecTech posted an operating profit of GBP802,000 in the year ended June 30, 2013, up from GBP189,000 in the previous year.
GB Group expects the acquisition to be earnings enhancing in its first full year.
The company said it has conditionally raised GBP11.0 million through the placing led by Peel Hunt of 8 million new shares at 137.5 pence per share, around 6.8% of GB Group's increased share capital. This is a premium of 3.4% on the company's closing mid-market price Wednesday, GB said.
Shares in GB Group were trading up 8.8% at 144.70 pence Thursday midday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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