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Share Price Information for Gresham (GHT)

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Share Price: 161.00
Bid: 160.00
Ask: 162.00
Change: 0.00 (0.00%)
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Open: 162.00
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Low: 161.00
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UPDATE: Gresham Tech buys US fintech Electra for USD38.6 million

Fri, 28th May 2021 14:31

(Alliance News) - Gresham Technologies PLC on Friday said it has acquired Electra Information Systems Inc for USD38.6 million and raised GBP21.0 million from new shares 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, which will depend on Electra's revenue for two years following the purchase.

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

The company completed the placing in an accelerated bookbuild on Friday, raising GBP20.0 million. A retail offer raised a further GBP1.0 million. The shares were sold for 160p each, equal to Thursday's closing price.

Gresham Technologies also agreed a new USD15 million credit facility and a USD10 million accordion facility 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 3.1% at 165.00 pence each in London on Friday afternoon.

By Scarlett Butler; scarlettbutler@alliancenews.com

Copyright 2021 Alliance News Limited. All Rights Reserved.

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