Regenersis plc (RGS.L), an outsourcing partner to the global consumer technology companies, Monday announced it has conditionally agreed to acquire all of the issued share capital of Blancco Oy Ltd, a provider of data erasure software, and controlling stakes in its major sales offices for about 60 million euros.
Of the total consideration, 58.7 million euros will be in cash and about 1.3 million euros will be in shares
To fund the acquisition, as well as for general corporate purposes, the company has conditionally raised gross proceeds of 100 million pounds through a placing of 28,986,000 new ordinary shares of 2 pence each, at a price of 345 pence per share, with new and existing institutional shareholders Panmure Gordon (UK) Ltd.and Cenkos Securities plc. Regenersis said the placing was significantly oversubscribed.
The company noted that holders of the new ordinary shares will not be entitled to receive the interim dividend of 1.32 pence per share payable for the 6-month period ended December 31, 2013.
The company expects that in the wake of the approval of the draft European General Protection Regulation by European Parliament, due to come into force in 2015, there will be a higher compliance burden on companies holding consumer data, both in terms of processes and in terms of documentation and record keeping requirements as well as a new requirement for some companies to have a permanent data protection officer.
"I am delighted with this acquisition. Blancco is a great business with an excellent fit, and at a price that works for shareholders. 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," said Matthew Peacock, Executive Chairman of Regenersis.
The acquisition is expected to be completed on April 17.
The company also said its expects profit growth in the second half of the financial year ended June 30, 2014 will come mainly from the Emerging Markets and Advanced Solutions divisions.
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by RTT Staff Writer
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