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AdEPT raises £4.25mln as it targets 'potential acquisitions'

The IT services firm said it raised the funds through a placing of around 1.32mln new shares at a price of 320p each as well as a subscription of 7,813 new shares by certain directors of the company

AdEPT Technology Group PLC - AdEPT plans £4mln fundraising for potential acquisitions

AdEPT Technology Group PLC (LON:ADT) has raised up to £4.25mln to fund potential acquisitions as part of a wider strategy to expand the business.

The IT services firm said it raised the funds through a placing of around 1.32mln new shares to certain existing shareholders and institutional and other investors at a price of 320p each, an 11% discount to its closing price on Thursday, through an accelerated bookbuild which will begin immediately.

WATCH: AdEPT Technology's Phil Race explains thinking behind recent £4.25mln fundraise

The placing took place alongside a subscription of 7,813 new shares by certain directors of the company at the same price.

AdEPT said the funds will be used to “finance potential acquisition opportunities” which it said will “provide an expedited route towards growth” and expand the firm’s product and technology capabilities.

“Acquisitions are a key component of the AdEPT strategy and the Board believes that there is significant opportunity and value to be found in the highly fragmented UK managed services sector within the ICT arena”, the company added.

The money will also be used as part of the company’s strategy to reduce its indebtedness as well as for general working capital.

AdEPT also provided a brief update on current trading, which it said was “in line with consensus market expectations” and that it expected to pay a final dividend in its results for the year ending 31 March.

The shares were 10.6% lower at 322p in late-afternoon trading on Friday.

--Adds result of placing and updates share price--

Quick facts: AdEPT Technology Group PLC

Price: 183.5 GBX

LSE:ADT
Market: LSE
Market Cap: £45.93 m
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Watch

AdEPT Technology's Phil Race explains thinking behind recent £4.25mln fundraise

AdEPT Technology Group PLC's (LON:ADT) Phil Race caught up with Proactive London's Andrew Scott to talk through their recent £4.25mln placing. It was done to support potential acquisitions as part of a wider strategy to expand the business.

on 27/2/20

2 min read