28th Jul 2015 08:32
LONDON (Alliance News) - Electronic technologies company Stadium Group PLC on Tuesday said it has agreed a deal to acquire power supply units, transformers and adaptors manufacturer and distributor Stontronics for up to GBP6.5 million.
Stadium will pay GBP5.5 million in cash for the company, with a further GBP1 million to be paid based on Stontronics hitting future financial targets.
Stadium will fund the acquisition via a GBP6 million placing, split between a firm placing of 4.5 million shares and a placing and open offer of 913,899 shares, all priced at 110 pence per share.
It said the deal will strengthen its technology offering and will drive synergies and cross-selling opportunities.
"A clear focus for Stadium is to continue to strengthen and build on the success of our Technology Products division. We have been targeting potential acquisitions that bring a clear value proposition; businesses that complement our existing technologies, increase our exposure to high growth markets, and improve our quality of earnings," said Charlie Peppiatt, Stadium's chief executive.
Shares in Stadium were up 1.5% to 122.7999 pence on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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