LONDON (Alliance News) - Amino Technologies PLC said Tuesday it has agreed to acquire broadcast television and connected home services provider Entone Inc for a total of USD73.0 million, as its pretax profit for its first half doubled from the previous year.
Amino provides software and technology for television over the internet applications.
For the half year to end-May, Amino posted a pretax profit of GBP3.6 million, doubled from GBP1.8 million the year before, as revenue rose to GBP17.9 million from GBP16.4 million. Gross margins improved to 50.8% from 44.9% a year earlier, due to an improved product mix.
Amino proposed an interim dividend of 1.265 pence, up from 1.15p a year before.
The acquisition of Entone will be funded by USD65.0 million in cash, made up of cash resources in the company, debt, and GBP21.0 million it has raised in a placing. A deferred consideration of USD8.0 million will be payable in cash, of which a portion will be used to subscribe for deferred consideration shares.
Amino said Tuesday afternoon it raised GBP21.0 million through the placing of 16.15 million shares at a price of 130.0p, a 6.5% discount to the stock's closing middle market quotation price Monday of 139.0 pence per share. The placing was conducted by Cannacord Genuity and finnCap as joint brokers.
Shares in the company are trading up 7.8% at 149.89p Tuesday afternoon.
Amino expects the acquisition to add to earnings "significantly" in its first full year of ownership.
Amino expressed confidence of meeting market expectations for its full year before the impact of its acquisition of Entone.
"Today's proposed acquisition of Entone takes that credibility one step further still, not only adding excellent product and people to our offering, but transforming the scale of our business too. We enter the second half confidently and are excited by the long-term potential for a bigger, bolder Amino," said Non-Executive Chairman Keith Todd in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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