CloudCall agrees £39.9m takeover by Xplorer Capital, shares surge

(Sharecast News) - AIM-listed integrated communications group CloudCall surged on Thursday after agreeing to be taken over by tech investor Xplorer Capital Management in a £39.9m cash deal.
Xplorer has offered 81.5p a share, which represents a 71.6% premium to the CloudCall closing price on Wednesday.

Xplorer said there is "significant scope" for increased adoption of CloudCall's technology if the company has access to additional finance.

CloudCall non-executive chairman Peter Simmonds said: "Over recent years, the management of CloudCall has continued to develop its product mix, enhanced its client base and positioned itself for growth. However, CloudCall operates in a highly competitive environment where many of its peers are larger and better capitalised and CloudCall will require additional funding to continue to support its strategy and remain competitive.

"Against this backdrop, I believe the offer from Xplorer Capital represents an attractive premium, provides certain value today for CloudCall shareholders and provides CloudCall with the opportunity to access significant further capital to implement CloudCall's strategy in the future."

The deal is expected to complete in the first quarter of next year.

At 1020 GMT, the shares were up 66% at 79p.