UK technology consulting firm Sagentia Group Plc (LON:SAG) said today it had bought domestic sector player OTM Consulting Limited via a cash-and-stock deal valued at GBP6.5m (USD9.7m/EUR7.5m).
The transaction involves a cash payment of GBP5.3m, funded with available cash, and 944,139 Sagentia shares worth GBP1.2m, based on the buyer’s average closing mid-market price in the five dealing days before completion. The stock, which will be issued from the company’s treasury shares, is subject to a three-year lock-in period, Sagentia said.
The acquired business, which was set up in 1993 by Chris Dudgeon, provides technology management consultancy services to the oil, gas and alternative energy sectors. It is based in Guildford, Surrey, and also has offices in Houston in the US and Dubai. Last year it posted revenues of GBP4.3m and a pretax profit of GBP800,000 with 35 employees.
The purchase will help the buyer bolster its development in the growth area of oil, gas and alternative energy. It is seen to add to its earnings in the current financial year, Sagentia added.