12th Aug 2022 11:15
(Alliance News) - IQGeo Group PLC on Friday said it plans to raise GBP3.5 million to partially fund its acquisition of Comsof NV.
IQGeo is a Cambridge-based geospatial productivity and collaboration software company focused on the telecoms and utility industries.
The company has bought Comsof for up to EUR13 million, consisting of just shy of EUR8.9 million in cash and just under GBP1.2 million in shares.
Comsof is a Ghent, Belgium-based company that builds and licenses fibre optic network planning and design software.
IQGeo said that the acquisition will provide a customer base in the European telecommunications market and will create a continental European operations hub for the company from its main office in Ghent.
In the 12 months to April 30, Comsof reported revenue of EUR7.0 million, including recurring revenue of around 25%, and earnings before interest, tax, depreciation and amortisation of approximately EUR1.3 million.
IQGeo expects the acquisition to be earnings enhancing in its first full year of ownership.
To help fund the acquisition, IQGeo announced a placing to raise around GBP3.5 million, at a price of 125 pence per share. This represents a 0.6% discount to the share's closing price of 125.80p on Thursday, being the last business day before the announcement
IQGeo shares are currently up 3.8% to 129.00 pence each in London on Friday midday.
A number of IQGeo directors intend to participate in the placing, contributing around GBP400,000, the company said.
The placing is being conducted through an accelerated bookbuild, undertaken by finnCap Ltd.
Chief Executive Officer Richard Petti said: "There is very significant demand for fibre planning and design solutions globally and the acquisition of Comsof allows us to satisfy this demand with a world class product.
"In addition to accelerating IQGeo telecoms software sales, Comsof has a significant European customer base and its headquarters in Ghent will act as a European hub for the combined business presenting further expansion opportunities for IQGeo," Petti added.
By Sophie Rose; [email protected]
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