15th Aug 2016 07:20
LONDON (Alliance News) - Managed IT services and cloud computing firm Nasstar PLC on Monday said it has struck a GBP13.0 million cash and shares deal to acquire UK-based Modrus Ltd.
Nasstar will pay GBP11.7 million of the consideration in cash and the balance in shares. The deal will be funded by a share placing, in which Nasstar will issue 177.3 million shares at 7.5 pence per share, raising a total of GBP13.3 million. Nasstar shares were down 2.6% to 8.4p on Monday morning.
Modrus is a UK-based per user hosted managed services provider. It has a robust position in the media, property services and independent software provider markets, all of which are new verticals for Nasstar.
The firm is based in Bournemouth and has offices in London and New Zealand. In the year to the end of March, Modrus made adjusted earnings before interest, taxation, depreciation and amortisation of GBP1.6 million on GBP6.1 million in revenue.
"We are delighted to announce the acquisition of Modrus which represents a significant step in our acquisition strategy to increase our 'go to market' verticals and further diversify our customer base," said Peter Daresbury, Nasstar's chairman.
By Sam Unsted; [email protected]; @SamUAtAlliance
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