LONDON (ShareCast) - (Sharecast News) - Specialist information management services provider Idox announced the proposed acquisition of Tascomi for up to £7.15m on Wednesday, as well as its intention to undertake a placing via an accelerated bookbuild to raise net proceeds of around £7m at 28.5p per share to fund the transaction.
The AIM-traded firm said it entered into a share sale and purchase agreement to acquire Tascomi for a total consideration of up to £7.15m on a cash-free, debt-free basis, of which £5.43m would be satisfied immediately in cash, £1.15m would be payable to extinguish all existing debt in Tascomi, and a further £0.57m which could be payable within seven months, depending on settlement of various completion matters.

It described Tascomi as a Northern Ireland-based software business that offered web and cloud based software solutions to local authorities and government departments in the UK and Ireland.

The acquisition would accelerate the group's strategy, the board explained, and would "strongly" enhance its technological capabilities and market leading positions.

Idox said the enlarged group would combine Tascomi's platform and product with its "deep" domain knowledge and account management model, that would allow it to deliver the "next generation" of solutions to customers in its public sector markets, and drive enhanced shareholder value and service to customers.

"The addition of Tascomi's technology platform to Idox's deep domain knowledge and account management model will be a powerful combination that will allow us to deliver the next generation of software solutions to customers in our core public sector markets and drive enhanced shareholder value and service to customers," said Idox chief executive officer David Meaden.

"This acquisition offers a sound strategic fit as we look to enhance our overall cloud offering in conjunction with growing our software-as-a-service revenue base.

"It will also build on the significant operational progress our group has made in the last year, reshaping our board and senior management team, and establishing sound business models to drive great value from the assets we have in our business."

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