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Eagle Eye set to join AIM as 2ergo deal is approved

Published: 13:49 09 Apr 2014 BST

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Eagle Eye has raised £6mln through a share placing and confirmed its proposed acquisition of a rival online coupon business from 2ergo (LON:RGO).

The transaction was approved by 2ergo shareholders at a general meeting earlier today.

2ergo will effectively become a cash shell, following the sale of the operating subsidiary. It will also retain a 6% stake in Eagle Eye as a result of the sale.

Eagle Eye is issuing 3.65mln shares priced at 164p to raise the money. It gives Eagle Eye a market value of £33mln. Eagle Eye will use £2.5mln of the newly raised cash will pay for the 2ergo acquisition.

The rest of the funds have been earmarked for further investment in strategic technology and support the company’s growth.

''We are delighted with the investor response to the Placing and shareholder approval of the acquisition of 2ergo Limited,” Eagle Eye chief executive Phill Blundell said.

“Combined with its admission to AIM, Eagle Eye is ideally placed to meet the accelerating demand for its multi-channel digital solutions, underpinned by its patented technology and global partners.''

Eagle Eye shares are due to join the AIM market and start trading on Wednesday April 16.

Eagle Eye, which specialises in digital offers and currently has 60 clients including household names such as Marks & Spencer, Greggs, Pets at Home and Tesco.

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