8th Nov 2013 09:32
LONDON (Alliance News) - SQS Software Quality Systems AG said Friday that it had conditionally raised around GBP11.4 million in a share placing, which it intends to use in the acquisition of a majority share in software testing company Thinksoft Global Services Limited.
The company raised funds through the placing of 2.6 million shares at a price of 435 pence each. The company said the placing was significantly oversubscribed and had seen strong demand from institutional investors.
SQS will use the proceeds to partially finance the acquisition of an up to 52.9% share in Thinksoft, for USD17.5 million in cash.
Thinksoft is an India based software testing company listed on the Bombay Stock Exchange. SQS intends to acquire 24.5% of Thinksoft from founding shareholders and a further 28.3% through an offer to public shareholders in the company.
SQS said that, were it unable to acquire a majority shareholding, the founders have committed to selling their remaining shares, taking SQS's share to 50.6%.
SQS shares were up 6.1% Friday morning at 452.50 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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