6th Feb 2019 12:00
LONDON (Alliance News) - SysGroup PLC on Wednesday said it has conditionally raised GBP10.0 million while it has also agreed to acquire cloud hosting solutions provider Certus IT Ltd.
The AIM-listed IT services firm said the initial cash consideration is GBP8.0 million, increasing to a maximum cash consideration of GBP9.0 million, dependent on the performance of Certus in the 12 month period following completion.
SysGroup has issued 26.3 million shares at a price of 38 pence each to fund the acquisition.
The stock was trading 4.0% lower on Wednesday at 40.33p a share, giving it a market capitalisation of GBP9.3 million.
The company has also conditionally refinanced its existing term loan facility as a GBP1.8 million term loan over five years and arranged a new GBP3.4 million acquisition revolving credit facility with Banco Santander SA to provide additional financial flexibility.
SysGroup said Certus will help to bolster its existing managed service offerings, by expanding the enlarged company's customers base.
"The funds raised coupled with the new bank facilities will ensure the group is well positioned to continue to invest in opportunities for growth," said Chief Executive Adam Binks.
"This acquisition fits within our strategy of growing the business organically and through strategic acquisitions, and we are excited by the prospects that lie ahead," added Binks.
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