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Shearwater reveals second purchase under new management, with the £0.6mln acquisition of Newable Consulting

The AIM-listed firm said it will pay an additional consideration payment of up to £0.1mln for Newable, a leading UK-based provider of risk, technology, governance, cyber security assurance and advisory services subject to future performance
Cyber security
Newable was founded in 2009 by its current managing directors, Mark Child and Nick Alford, who will remain with the business and continue to lead its operations

Shearwater Group plc (LON:SWG) - the renamed and refocused resources junior Aurum Mining – has revealed a second purchase under its new management, with the acquisition of the business and assets of Newable Consulting Limited for an initial consideration of £0.6mln.

The AIM-listed firm said it will pay an additional consideration payment of up to £0.1mln for Newable, a leading UK-based provider of risk, technology, governance, cyber security assurance and advisory services subject to future performance.

Newable was founded in 2009 by its current managing directors, Mark Child and Nick Alford, who will remain with the business and continue to lead its operations.

READ: Shearwater Group reveals reverse takeover of authentication software firm SecurEnvoy

For the twelve months ended 31 March 2017, Newable generated audited revenue of £2.4and an underlying  (LBITDA) of £0.08mln.

Shearwater said it expects the business – which has been rebranded Xcina Consulting and will form a core component of Shearwater’s new information security and assurance company, Xcina - to become profitable in its first full year within the group.

Newable has also agreed to subscribe for £0.15mln of new Shearwater ordinary shares at a price of 4.143p per share and has agreed not to dispose of the shares for a period of 12 months from issue.

David Williams, Shearwater’s chairman said: "Representing our second acquisition this year, it is another example of partnering with industry leading operators who can see the merits of joining Shearwater to benefit from the wider market opportunities that our experienced Board can access."

The move follows on from the group’s first deal, unveiled on April 20, which saw acquire SecurEnvoy for £20mln, which was satisfied by £10mln in cash and £10mln through the issue of 200mln new Shearwater shares at a price of 5p each.

The group also funded that deal through £8mln placing of up to 200mln shares at a price of 4p each, and a proposed open offer to shareholders of up to 25.5mln shares at the same price to raise up to another £1mln.

Shearwater’s chairman is known in the City for turning his investment vehicle Marwyn into a £1bln-valued quarrying and aggregates business, Breedon Group PLC (LON:BREE), through some aggressive acquisitions.

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