LONDON (Alliance News) - Trakm8 Holdings PLC on Monday said it has agreed to buy Route Monkey Holdings Ltd for up to GBP9.1 million, which it pay in cash and 184,441 new shares.
For part of the cash element, Trakm8 will raise GBP6 million through the placing of 1.8 million shares at 333 pence each with new and existing institutional investors. The price is the same as used for the share issue to the sellers of Route Monkey, which provides route planning technology.
Shares in Trakm8 were down 2.9% at 364.00 pence Monday morning.
Trakm8 will pay up an initial GBP5.4 million, along with the repayment of a company loan valued at GBP1.7 million, plus a maximum deferred cash consideration of GBP2 million.
"The acquisition of Route Monkey is highly complementary to Trakm8 as it adds route planning and optimisation capability to our existing technology, a key to enabling us to offer integrated solutions to customers in line with the development of market requirements," said Executive Chairman John Watkins in a statement.
"We look forward to welcoming the Route Monkey team into the growing Trakm8 group and expect the business will add another source of organic sales growth and recurring revenues," Watkins added.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Trakm8 Hldgs (TRAK)