Provider of remote meetings tech in £61.4m deal
A global remote meetings technology group headquartered in London has struck a major deal to buy a video conferencing company for more than £60m.
AIM-listed LoopUp Group, which also has offices in the US, Hong Kong, Australia and Barbados, has agreed to buy MeetingZone Group for £61.4m in cash.
To fund the deal, LoopUp will be taking a £17m loan from the Bank of Ireland and raising £50m through a placing of 12.5 million new shares.
"LoopUp exists to transform, for the better, the way remote meetings take place," said co-chief executive Steve Flavell. "We remove countless pain points from a vital means of everyday business communication and improve productivity.
"This is something we have been able to do successfully, driving consistently strong, profitable growth over the past few years."
Meanwhile, Cardiff-headquartered MeetingZone has approximately 6,000 customers worldwide and international operations in Germany, Sweden and North America.
The business has a consistent track record of profitability and grew to revenue of £22.5 million and gross profit of £15m in the 12 months to 31 December 2017.
"The acquisition of MeetingZone will help us to enhance our already strong competitive position, add significant scale to our business and amplify the network effect of our offering," Flavell added.
"It will also provide us with an opportunity to reinvest further in our business, in particular our people, product and our 'Pods'.
"We thank all of the existing and new shareholders who have supported this proposed acquisition and who, like us, see it as an exciting opportunity to expand LoopUp's position and drive long-term growth."
LoopUp provides its remote meetings solution to major global brands including the likes of Travelex, Planet Hollywood and National Geographic.