Industrial machinery and equipment auctioneer Go Industry slipped 6% after announcing that it was acquiring capital asset auction and valuation services group DoveBid Inc. GoIndustry will raise £18.5 million at 10 pence per share to fund the acquisition of which £13.75 million will be in cash with the remainder met through the issue of 32.5 million shares. The remaining funds will be used for working capital.
The acquisition will consolidate GoIndustry's position as a leading company in the valuation and auction of surplus industrial machinery and equipment, the Company said.
John Allbrook, CEO commented:
"This is a truly transformational deal for our company that will give us a market leading position in the United States, Europe and Asia-Pacific regions. As one company, we are bigger, stronger and more focused, with a clear ambition to serve our customers and help them become even more successful."