2nd Sep 2014 16:24
LONDON (Alliance News) - Tungsten Corporation PLC said Tuesday that it is raising GBP12 million through a share placing to fund its acquisition of Image Integration Systems Inc, known as DocuSphere.
DocuSphere provides accounts payable automation services, which Tungsten thinks would bring additional strength to its Tungsten Network offering. In the year to end-November 2013, DocuSphere posted a net loss of USD400,000 on revenue of USD3.3 million. In the 12 months to end July 2014, it posted revenue of USD3.7 million.
Tungsten will raise GBP12 million through an accelerated book build process, where little or no marketing is done. Cannacord Genuity Ltd will act as sole bookrunner, broker and agent to the placing.
It will use around GBP5 million of the proceeds to finance its acquisition of DocuSphere for up to USD6.5 million, as well as the expected integration investment and DocuSphere working capital arising from the acquisition.
The remaining GBP7 million will be invested towards handling expanded customer commitments. Tungsten has seen a series of contract wins that have been ahead of its expectations in scale and the rate in which they have been signed, which means it has to create appropriate infrastructure to handle the contracts.
"Tungsten Corporation's acquisition of DocuSphere demonstrates our commitment to delivering secure, smart and fast services through a stronger e-Invoicing proposition," said Chief Executive Officer Edmund Truell in a statement.
Shares in Tungsten closed up 0.1% at 344.75 pence Tuesday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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