Eckoh Alters Deferred Consideration On Veritape Acquisition

LONDON (Alliance News) - Eckoh PLC Monday said it has reached an agreement to change the deferred consideration payable related to the acquisition of Veritape Ltd last year.

Under the changes, the cash element of the deal has been withdrawn and the deferred consideration of up to 10,739,507 shares in Eckoh will be paid dependent on Veritape meeting targets set by Eckoh.

The new arrangement will see 6,443,704 shares paid with immediate effect to Veritape shareholders. The remainder of the shares will be paid out dependent on Veritape hitting revenue targets in the next two financial years.

"Since acquiring Veritape Limited in June 2013, we have been delighted with the positive impact that the acquisition has had, and the success with which we have been able to integrate the Veritape team into the wider Eckoh group," said Veritape Chief Executive Nick Philpot.

"It was therefore a logical step to take to alter the agreement to ensure that Veritape were incentivised to help the company deliver on its key strategic goals," he added.

Eckoh shares were down 1.2% to 42 pence on Thursday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2014 Alliance News Limited. All Rights Reserved.