22nd Dec 2022 10:35
(Alliance News) - Journeo PLC on Thursday said it has agreed to acquire IGL Ltd for around GBP8.7 million, funded by a share issue.
The Leicestershire, England-based transport system services provider said it will acquire the entire issued share capital of IGL, with the acquisition expected to be earnings accretive to Journeo.
The company said the acquisition would add about GBP12 million of sales and GBP2 million of pretax profit in the first full year after the acquisition.
Journeo said it has raised GBP7 million to fund the acquisition from a placing and subscription of 6.7 million new shares at 105 pence each, conditional on shareholder approval. The stock was up 12% at 130.50p per share on Thursday morning in London.
The company said part of the proceeds of the placing will be used to repay GBP550,000 in 10% loan notes. Journeo said all loan note holders intend to use the proceeds of the redemption to subscribe for the new shares.
The company further announced a retail offer to raise up to GBP350,000 through the issue of 333,333 new shares at the same price as the placing.
Journeo will pay an initial GBP6.2 million for IGL - which Journeo called the UK's leading rail passenger information equipment provider, with over 15,000 displays in operation - with GBP500,000 payable in 476,190 new shares and deferred cash of GBP2.0 million.
By Harvey Dorset, Alliance News reporter
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