LONDON (Alliance News) - Investment firm Castle Street Investments PLC on Tuesday said it has struck a GBP20.2 million cash and shares deal to acquire network services and data hosting company C4L Group Holdings Ltd.
Castle Street will pay GBP14.2 million in cash, funded through existing cash and debt resources, with the rest to be covered by the issue of 18.4 million shares at 32.5 pence per share. Castle Street shares were up 3.9% to 40.00p on Tuesday morning.
Castle Street said the deal will be immediately earnings-enhancing and follows on from its purchase of IT and cloud services provider Selection Services Investments Ltd in January, allowing it to offer a broader integrated IT services platform with a wider client base.
Following the deal, Mathew Hawkins, the chairman of C4L, will join Castle Street's board as chief technology officer, while Simon Mewett, C4L's chief executive, will become chief operating officer.
"C4L combined with our recent acquisition of Selection Services demonstrates the progress we are making towards becoming an integrated IT services and cloud provider," said Andy Ross, Castle Street's chief executive.
MXC Capital Ltd also released a statement on the deal on Tuesday as it advised Castle Street on the investment. MXC shares were up 5.8% to 3.86p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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