Concurrent Technologies, a London-listed computer systems and boards manufacturer, has announced its acquisition of Phillips Machine & Welding Company, also known as Stryker. The deal, worth £2.6 million ($3.3 million), will be funded through a share placing and retail offer, with the remaining funds allocated towards growth opportunities.
Fundraising Details
Concurrent Technologies plans to raise up to £6.8 million through the placing and retail offer at 65 pence per share. This issue price represents an 11% discount to the company's closing price of 73.0 pence on Tuesday. As part of the deal, Concurrent Technologies will issue 10 million new ordinary shares and offer existing shareholders the opportunity to purchase an additional 461,538 shares at the discounted price through the retail offer.
The successful completion of this fundraising is contingent upon shareholder approval, which will be sought at a general meeting scheduled for September 4.
Business Restructuring
Following the acquisition, Concurrent Technologies will transfer the machine shop division of Phillips Machine out of its business, retaining only the aerospace and military division. Stryker is renowned for its design and manufacture of rugged systems that utilize plug-in cards, primarily serving major defense companies in the United States.
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