(Alliance News) - AIM-listed investment firm Two Shields Investments PLC said Wednesday it has agreed to all of BrandShield Ltd not already owned by Two Shields, for about GBP13.2 million.
Two Shields currently owns 20% of cyber security firm BrandShield. The acquisition is classified as a reverse takeover under AIM market rules.
To finance the expanded company, Two Shields has raised GBP3.2 million from a placing with institutional and individual investors at 20 pence per share. Investors included Ann Gloag, co-founder of Stagecoach Group PLC, the bus and train operator.
As part of the fundraise, Two Shields is conducting a 200-to-1 share consolidation.
Chair Andrew Lawley said: "We are delighted to announce the acquisition of BrandShield today. TSI revised its strategy in recent years to focus on increasing exposure to the high-growth, technology enabled investments within its portfolio, and today's acquisition clearly illustrates the success of that strategy."
Lawley added that the GBP3.2 million placing will support BrandShield's "ambitious growth strategy".
"With BrandShield's product now highly developed it is aiming to significantly increase sales & marketing activity to capitalise on the rapid growth within its industry, caused by an acceleration in digital transformation and associated online criminal activity," Lawley added.
BrandShield provides an end-to-end digital brand protection and online threat hunting solution to protect its customers from the financial costs and reputational damage suffered from phishing attacks, online fraud, executive impersonation or the sale of counterfeit goods online.
BrandShield grew annual recurring revenue in 2019 to USD1.9 million from USD570,000 in 2017. Annual recurring revenue from new business signed in the first half of 2020 was almost equivalent to that signed in full year 2019. As of 30 September 2020 annual recurring revenue was USD2.5 million.
Following the deal, Two Shields shares have been readmitted to trading on AIM. It is also planning to change its name to BrandShield Systems PLC upon completion of a reverse takeover of BrandShield.
By Paul McGowan; paulmcgowan@alliancenews.com
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