£31 million Acquisition of Syntec Holdings Limited & Placing raising £13.7 million
Singer Capital Markets is delighted to have acted as Nominated Adviser & Joint Bookrunner to Eckoh plc on its significantly earnings enhancing, £31 million Acquisition of Syntec Holdings Limited & oversubscribed Placing raising £13.7 million.
Eckoh successfully placed a total of 25,377,600 ordinary shares of 0.25 pence each in the capital of the Company with existing and new institutional investors. The Placing Shares will be issued at a price of 54 pence per share, representing a 12.2 per cent. discount to the closing middle market price of an Ordinary Share on 14 December 2021. In addition, the Company has also agreed to issue 10,825,040 new Ordinary Shares to the vendors as part of the consideration for the Acquisition of Syntec Holdings Limited (“Syntec”).
The net proceeds of the Placing will be used to part-fund the Cash Consideration portion of the Acquisition together with associated transaction costs.
The Company has entered into an agreement to acquire the entire issued share capital of Syntec, a provider of Secure Payments solutions, for a total consideration of £31.0m through a combination of cash and new Eckoh shares.
The Acquisition will enable Eckoh to further capitalise on the structural trends that are shaping a significant growth market in Customer Engagement security. The combined capabilities and complimentary operations of the two companies will ensure Eckoh is strongly positioned to provide multiple solutions to clients that are facing challenges including evolving regulatory pressures, the growing risk of data breaches and fraud, and the widespread migration to a greater level of remote working following the impact of the COVID-19 pandemic.
The Acquisition is expected to be earnings-enhancing in the first full year of ownership before synergies as well as significantly earnings-enhancing in the first full year post-synergies.
Admission and settlement is expected to take place at 8.00 a.m. on 22 December 2021.
About Eckoh plc
Eckoh is a global provider of Secure Payment products and Customer Contact solutions, supporting an international client base from its offices in the UK and US. Eckoh’s Secure Payments products help their clients take payments securely from their customers through all engagement channels.
Market Cap: £138.9 million*
Website: Click here
*As at 16/12/2021