Cyan Holdings PLC (LON:CYAN), the smart metering solutions provider, is to buy the internet of things (IoT) software firm Connode Holding for £6.8mln.
The final figure consists of £4.3mln in cash and a further £2.5mln in shares, with the cash being funded through a £10.1mln share placing.
“The acquisition of Connode is transformational for Cyan, and will give us the capability…to future proof our customer solutions,” said executive chairman John Cronin.
Connode is a Swedish provider of wireless communication solutions, with customers in the UK, Europe and Asia, and Cyan hopes the acquisition will allow the company to tap into these markets too.
“Since 2006 utilities and telecom operators have deployed Connode-enabled devices in large-scale projects in Europe. As a result, the acquisition will open up new territories for the Company in Europe and other western markets, including potentially North America,” it said.
The remaining funds from the placing not used for the acquisition will be used as working capital for Cyan.
A further £2mln has been strategically invested by Biggles Enterprises Limited, part of the JS Technical Services Company in Thailand, a company Cyan partnered with in May.
The company added that all of its directors took part in the fundraise.
Shares were down 0.026p, or 12%, to 0.184p.