(Alliance News) - Dods Group PLC on Tuesday said it agreed to buy Meritgroup Ltd for GBP22.4 million on a debt free basis, payable in cash and shares.
The stock was trading 3.0% higher on Tuesday in London at 8.50 pence a share.
The events and publishing company said is is currently completing the fundraising process to part fund the cash element of the consideration payable on completion of the acquisition.
As part of the fundraise, Dods expects to provide an open offer to enable existing shareholders the opportunity to participate in the fundraise. In addition, the company proposes to enter into a new debt facility.
Merit is a provider of data services and software code, established in 2004 in the UK and India. In 2018, Merit generated revenue of GBP9.2 million and pretax profit of GBP1.2 million.
On Saturday, This Is Money news website reported that the publisher of the Houses of Parliament's in-house magazine is in talks with a rival about a GBP50 million combination.
According to the report, Dods' largest shareholder Michael Ashcroft, best-known for being former deputy chairman of the Conservative Party - and who has a 43% stake - is said to be happy to invest up to GBP7 million as part of the Merit merger.
It was reported that Dods plans to fund the deal by raising around GBP15 million and borrowing GBP20 million.
