19th Dec 2019 11:24
(Alliance News) - Events firm Hyve Group PLC on Thursday confirmed it has raised GBP63.9 million to go towards a major acquisition.
Hyve, which was until September known at ITE Group, has placed 59.6 million new shares at a price of 88 pence each with both existing and new investors.
Founders Anil Aggarwal and Simran Rekhi Agarwal, together with managers of two firms being purchased, have subscribed for 14.6 million new shares.
In total, London-based Hyve has raised GBP63.9 million, at a 2.8% discount to its closing price in London on Wednesday. Shares were 6.5% higher in London on Thursday at a price of 96.40p each.
The share placing was announced on Wednesday, at the same time as Hyve announced the USD145 million cash purchase of US marketing firms Shoptalk Commerce LLC and Groceryshop LLC. The placing funds will be used alongside a debt facility to pay for the acquisitions.
The two firms are expected to generate a combined USD35.8 million revenue in 2019. Hyve itself reported revenue of GBP220.7 million in its year to September.
The founders of Shoptalk and Groceryshop will be taking part in the subscription, Hyve said.
By George Collard; [email protected]
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