Business
Acquisition of Enterprise Ventures
Acquisition of Enterprise Ventures.
About this update from Mercia Asset Management Plc
[{"type":"text","content":"\n \nRNS Number : 6507R Mercia Technologies PLC 10 March 2016 \n\n\n\n\n\nFor release at 7.00am\n\n\n10 March 2016\n\n\n\n\n \nMercia Technologies PLC\n(\"Mercia\", \"the Company\" or \"the Group\")\n \nAcquisition of Enterprise Ventures Group Limited\nAppointment of Director \n \nContinued expansion of the Mercia model, creating a leading provider of early stage and growth capital in the Midlands, the North of England and Scotland\n \nMercia is delighted to announce that it has acquired the entire issued share capital of Enterprise Ventures Group Limited (\"Enterprise Ventures\"), a leading provider of early stage and growth finance through third party managed funds in the North of England, for a total consideration of up to £11.0 million, plus net cash. The acquisition is expected to be immediately earnings enhancing. Enterprise Ventures has successfully built a portfolio of almost 150 equity investments, via its third party funds under management, in innovative companies spanning a range of sectors within Mercia's focus. \n \nMercia has developed a complete capital solution investment model of nurturing early stage businesses via its third party funds under management to create a funnel of future direct investment opportunities for Mercia (its \"Emerging Stars\"), by investing in, supporting and scaling innovative businesses in targeted technology sectors to deliver significant shareholder value. The Directors believe that the acquisition of Enterprise Ventures significantly accelerates Mercia's stated strategy of becoming a national technology investment business, with a local presence in the underserved regions of the Midlands, the North of England and Scotland, whilst greatly expanding Mercia's funnel of future Emerging Stars for direct investment. \n \nThis strategic acquisition is for an initial consideration of £9.0 million, comprising approximately £8.3 million satisfied in cash funded from existing resources and approximately £0.7 million to be satisfied by the issue of 1,645,711 new Mercia shares (the \"Initial Consideration Shares\"), and an amount equal to Enterprise Ventures' net cash position (subject to certain adjustments) at completion (estimated to be approximately £1.9 million). In addition, deferred consideration of up to £2.0 million, to be satisfied by the issue of new ...