(Sharecast News) - Software company Attraqt Group has agreed to acquire artificial intelligence search technology Aleph Search on Thursday for an initial consideration of £350,000 in cash and 3.6m new ordinary shares.
Attraqt said it would also place 12.5m new ordinary shares at 32.0p each, a premium of 3.2% to its closing share price on Wednesday, as part of an effort to raise up £4.0m.
The AIM-listed group said the placing was "significantly" oversubscribed.
Attraq highlighted that approximately £1.0m would be used to fund the Aleph acquisition, while a further £2.0m will be set aside to help increase investment in sales and marketing.
Chief executive Mark Adams said: "The acquisition will enable us to not only immediately enhance the group's AI search capability and accelerate our product roadmap by an estimated two years, but also enhances our competitive advantage.
"We have been working together with Aleph for six months and we have already seen the combined offering provide tangible results to our existing customers, generating approximately 20%-60% higher conversion rates in proof of concept trials. Importantly, we are confident that the combined offering will give us the opportunity to increase our new business win rate and to further upsell into our existing base through a more competitive offering."
As of 1025 BST, Attraqt shares were up 16.13% at 36.0p.
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