LONDON (Alliance News) - Mercia Technologies PLC on Thursday said it has struck a GBP11.0 million deal to acquire Enterprise Ventures Group Ltd, a north of England-based early stage and growth finance provider.
Mercia will pay GBP9.0 million initially for Enterprise Ventures, split between GBP8.3 million in cash and a further GBP700,000 to be satisfied via the issue of 1.6 million Mercia shares. That would give the new Mercia shares a price of around 43.75 pence.
Mercia shares were up 1.0% to 41.90p on Thursday.
The rest of the consideration will be paid in Mercia shares over two years following completion of the deal, dependent on third-party funds raised by Enterprise Ventures.
Mercia said Enterprise Ventures has a portfolio of around 150 equity investments on its books and the deal will boost its geographic presence in the UK.
"This strategically-focused acquisition further scales Mercia's differentiated complete capital solution into the North of England, positioning the group as the leading go-to investor in and supporter of great technology success stories in the Midlands, the North of England and Scotland," said Mark Payton, Mercia's chief executive.
"With the scale, geographic reach, access to capital and investment expertise that the enlarged business offers, this represents a significant step towards Mercia becoming the market leader for the funding and development of high growth innovative businesses within our chosen sectors and geographies," he added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Mercia Asset (MERC)