LONDON (Alliance News) - Cyber security company Falanx Group Ltd on Thursday said it has agreed to acquire cyber security services firm Advanced Security Consulting Ltd and will raise money through a placing and loan notes issue.
Falanx will pay GBP435,000 to acquire Advanced Security, a UK-based cyber security firm offering consulting, managed services, penetration testing and training. It made a GBP222,000 pretax profit in the year to the end of September 2015 on revenue of GBP348,000.
Falanx will pay GBP150,000 in cash to acquire Advance Security and will issue 7.1 million shares to cover the balance of the consideration.
Elsewhere, Falanx said it has placed 25.1 million shares with existing and new investors at 4.00 pence per share to raise GBP1.0 million. Falanx said GBP415,000 of the funds have been raised through the PrimaryBid.com fundraising platform.
Falanx shares were down 31% to 4.13 pence on Thursday.
Falanx has also raised a further GBP495,000 through the issue of convertible notes to Darwin Capital Ltd, redeemable at 10.00p per share.
The placing and loan note funds will be used to partially fund the acquisition and to provide further capital for the company to back its growth plans.
"ASC's capabilities are entirely complementary to our own and will allow us to offer a compelling and integrated cyber security solution to organisations of all types, delivered by highly qualified experts," said Falanx Chief Executive John Blamire.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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