10th Nov 2016 09:23
LONDON (Alliance News) - Spend control software firm Proactis Holdings PLC on Thursday said it has agreed to acquire e-procurement systems provider Millstream Associates Ltd for GBP15.5 million and will partly finance the deal with a share placing.
Proactis said Millstream, which provides e-procurement systems to public sector clients, will broaden its product offering and present more cross-selling opportunities.
The deal will be funded by a share placing to raise GBP12.5 million and by a new GBP15.2 million revolving credit facility agreed with HSBC Bank.
In the placing, Proactis will issue 9.3 million shares at 135.00 pence per share. Shares in the company were up 10% to 136.00p on Monday. The placing will be conducted via an accelerated bookbuild run by FinnCap Ltd.
"The acquisition of Millstream represents a significant step in our growth strategy, substantially increasing the scale of the group. The acquisition broadens both the product offering and the customer base on the buy side of the procurement process whilst also bringing scale of operation on the strategically important supply side of the procurement process," said Rod Jones, Proactis's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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