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Digital resilience specialist Shearwater (LON:SWG) has reached an agreement to buy cyber-security firm Brookcourt Solutions for a total consideration of £30.3 million. Of the consideration, £22.95 million will be payable in cash – funded via a share placement valued at £25-30 million – with the remainder being in considered shares.
During the year ended 31st March, Brookcourt earned revenues of £22.2 million and £2.8 million in EBITDA.
Chairman David Williams commented that: “This transformational acquisition provides us with a substantial platform from which we can grow organically and by further acquisitions.
One of the key elements of our buy and build strategy is that the management teams stay with the business and become active parts of the enlarged group – I am therefore delighted that Phil, Dene and the Brookcourt team are joining us.
As well as being strategically and operationally a major development for us, this transaction will also bring a step change in our scale and breadth of offering, and notably it will make us cashflow positive following completion“.
Shares in Shearwater climbed 1.15% to 4.40p.