8th Oct 2018 12:05
LONDON (Alliance News) - Commercial lender PCF Group PLC said on Monday it has acquired specialist finance provider Azule Ltd for an initial GBP4.1 million in cash and shares.
Of the payment, GBP3.3 million will be paid in cash.
The remaining GBP800,000 will be satisfied by PCF issuing 1.9 million shares at a price of 39 pence per share to Azule's management team. Should the acquisition take place, PCF Group will have 214.2 million shares issued overall.
Shares in PCF Group were up 0.1% at 39.05 pence on Monday at midday.
An additional earn-out totalling GBP1.5 million can be paid in two tranches over a period of two years depending on agreed performance criteria.
The acquisition is expected to offer revenue synergies with PCF's current asset finance operations, and is expected to immediately enhance group earnings.
Completion of the acquisition is subject to approval of change of control from the UK Financial Conduct Authority.
PCF Group expects to publish a full-year trading update on October 22.
"The acquisition of Azule is a clear demonstration of the mutual advantages offered by the acquisition of an established asset finance business by PCF. As part of PCF Bank, Azule will be able to access a lower cost of funds enhancing profitability, enabling faster growth and accelerating PCF's achievement of portfolio growth targets," said PCF Chief Executive Scott Maybury.
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