6th Feb 2019 10:58
LONDON (Alliance News) - Personal Group Holdings PLC on Wednesday said it will buy UK-based pay and reward consultancy Innecto People Consulting Ltd for GBP3.0 million in cash.
Furthermore, the provider of employee services said it will promote Non-Executive Director Deborah Frost to the role of chief executive officer of the company once the acquisition is completed.
Frost is the co-founder and owner of Innecto. She also agreed to subscribe for GBP1.0 million in shares of Personal Group, at market prices. Fellow Innecto owner Justine Woolf will subscribe for GBP109,451 in shares.
Frost will replace current CEO Mark Scanlon who previously had announced his intention to leave the board before the end of September 2019.
Personal Group said expects the acquisition to be immediately earnings accretive as the business "presents an attractive acquisition opportunity as a well-established, complementary business in the employee benefits sector".
So far, the company has been advised by its two largest shareholders, representing 49.7% of the capital, that they will vote in favour of the proposed acquisition at the Personal Group's general meeting on February 27.
Personal Group shares were trading down 1.8% at 357.50 pence each.
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