GHT.L Share News (GHT)

(Alliance News) - Gresham Technologies PLC on Friday said it has acquired Electra Information Systems Inc for USD38.6 million, with a GBP21 million fundraise helping to fund the deal.

The London-based software company, specialising in data integrity and cash management, has agreed to pay USD29.0 million upfront with a further deferred payment of USD9.7 million for Electra, contingent upon Electra's revenue for two years following the purchase.

Electra is a New York-based provider of secure financial technology for post-trade processing.

Gresham Technologies will fund the acquisition through a combination of cash resources and a fundraise of 13.1 million shares, priced at 160 pence each. This includes a placing of 12.5 million new ordinary shares to raise GBP20 million and a retail offer of 625,000 shares to raise a further GBP1 million.

Gresham Technologies said that itself and its unit Gresham International have also agreed a new USD15 million credit facility, with a USD10 million accordion, with the Bank of Ireland. The company said in this acquisition it would only use this credit facility to make payments towards the deferred consideration for Electra.

Electra's pretax profit in 2020 rose 58% to GBP443,000, with revenue up 4.0% to GBP10.1 million

Gresham shares were trading up 2.2% at 163.51 pence each in London on Friday morning.

By Scarlett Butler; scarlettbutler@alliancenews.com

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