LONDON (Alliance News) - Shearwater Group PLC on Friday said it agreed to buy cyber security solutions company Brookcourt Solutions Ltd for GBP30.3 million.
The digital resilience firm said it will pay GBP23.0 million in cash and GBP7.4 million in shares.
Shearwater intends to raise between GBP25 million and GBP30 million through a share placing and GBP1 million via an open offer to fund the acquisition and provide an additional working capital for the enlarged company.
Shares in Shearwater were untraded on Friday, last quoted at 4.47 pence each.
For the year to the end of March, Brookcourt generated a revenue of GBP22.2 million and earnings before interest, taxes, depreciation, and amortization of GBP2.8 million. Shearwater said Brookcourt has longstanding customer relationships with multiple FTSE 100 and FTSE 250 companies across a variety of industry sectors.
Upon completion of the transaction, Shearwater said it expects the Brookcourt management team to remain with the company and support the further development of the business. The company plans to create a strong platform to drive organic and acquisitions growth, within a fragmented cyber security services and solutions market.
"This transformational acquisition provides us with a substantial platform from which we can grow organically and by further acquisitions," said Shearwater Chairman David Williams.
"As well as being strategically and operationally a major development for us, this transaction will also bring a step change in our scale and breadth of offering, and notably it will make us cashflow positive following completion," added Williams.
Shearwater (SWG)