Restore to acquire Rainbow HoldCo for £61.0m
Information and data management services firm Restore has entered into an agreement to acquire Rainbow HoldCo for a cash consideration of £61.0m on a cash-free debt-free basis.
Restore said on Friday that the acquisition of Rainbow, which trades as EDM Group, was expected to be immediately accretive to underlying earnings per share in the current financial, both pre- and post- the effects of the placing.
The AIM-listed group also announced a proposed placing on Friday, aimed at raise gross proceeds of approximately £40.0m. Restore will place up to 10.95m new ordinary shares at a price of 365.0p each, a discount of approximately 5.2% to the stock's closing price on 29 April.
Net proceeds of the placing will be used to reduce the company's net debt, to fund working capital and for general corporate purposes.
In terms of first-quarter trading, Restore added that it had seen a continuation of the "strong recovery momentum" towards pre-Covid revenue levels, with the group's board confident in its prospects in both the short and longer term.
As of 1010 BST, Restore shares were down 3.90% at 370.0p.