31st Mar 2014 09:26
LONDON (Alliance News) - Regenersis PLC Monday said it has agreed to acquire Finland's Blancco Oy Ltd for EUR60 million and has raised GBP100.0 million gross in an over-subscribed share placing.
Regenersis also said trading since the end of 2013 remains in line with market expectations.
The AIM-listed outsourcing services provider to technology companies said it it will acquire Blancco, a data erasure software provider, for EUR58.7 million in cash and about EUR1.3 million in shares.
The shares are to be issued to Blancco's chief executive in exchange for 5% of the company. He currently owns 42.58% of Blancco and will remain with the business.
Regenersis shares were Monday quoted at 387.00 pence, up 8.2% Monday morning.
Regenersis said it expects demand for data erasure to grow as a result of increased regulation and European rules that will lead to higher compliance requirements for companies holding consumer data. It said it believes the acquisition will enable it to improve its operating margin and boost its long-term growth prospects.
The GBP100 million was conditionally raised by issuing about 29.0 million new shares at 345 pence each, undertaken by Panmure Gordon (UK) Ltd and Cenkos Securities PLC. The proceeds not going towards the acquisition will be used for general corporate purposes, Regenersis said, and may include repayment of debts under Regenersis' revolving credit facility.
Regnersis said it is "actively" seeking to pursue a range of acquisition opportunities.
Executive Chairman Matthew Peacock said Blancco is "an excellent fit" for Regenersis.
"Most importantly it moves the centre of gravity of the group clearly into Advanced Solutions, with a majority of our profits in this segment, and it opens up a variety of possibilities for future development," Peacock said in a statement.
Regenersis said it expects most of its second-half growth to come from its Advances Solutions and Emerging Markets divisions.
Blancco was founded in 1997, has approximately 130 employees, is privately owned by individual selling shareholders, and is headquartered in Finland. It has sales offices in Finland, the UK, Germany and the US, and additional sales offices in Australia, Canada, France, Italy, Japan, Malaysia, Mexico, Russia and Sweden.
It currently has minority interests in certain of its sales offices and it is expected to have acquired controlling stakes in its major sales office immediately prior to completion of the acquisition, according to Regenersis.
Shareholders will be asked for their approval at a general meeting on April 16.
By Samuel Agini; [email protected]; @samuelagini
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