Alcadon Group AB (publ) (OM:ALCA) agreed to acquire Networks Centre Holding Company Limited for £41.5 million on August 10, 2022. The purchase price amounts to GBP 31.5 million on a cash and debt free basis of which approximately GBP 5.8 million will be paid in newly issued shares of Alcadon Group AB. On this basis, the Board of Directors has today decided on a directed share issue of 987,694 shares in Alcadon Group AB, of which the main shareholder Duncan Lindsay and related parties will receive 631,477 shares and the other nine shareholders 356,217 shares at a subscription price of SEK 73.30 per share. In addition, an additional purchase price (Earn-Out) of maximum GBP 10 million in cash is paid depending on the development of NWC's EBITDA over the next 36 months.
Deal will be financed through existing cash in Alcadon and refinancing of existing loans of £10.5 million together with a new bank loan of £20.3 million with a term of 3+1 years. Following the acquisition, the current Group Managing Director, Duncan Lindsay, will assume the role of Senior Vice President UK within Alcadon Group, where he will also be part of Alcadon Group's management team. The current Sales Director, James Reid, will take over the responsibility as Managing Director of the Networks Centre Group. Networks Centre will remain an independent company within Alcadon Group in line with Alcadon's strategy of working with decentralized profit centers. NWC reported per end of June revenues of £42.6 million with an underlying EBITDA of £3.6 million for the last twelve months. NWC will be consolidated into Alcadon Group as of the Acquisition Date, which is scheduled for 17 August 2022.