Live Company Group Plc (LON:LVCG) has agreed to acquire bespoke Lego statue maker Bright Bricks Holdings Limited for £8.5mln, to be part-financed by a share placing.
The media firm said it would aim to raise £3mln through the placing of around 4.6mln new shares at a price of 65p each, a 6.5% discount to the last close price of 69.5p.
The proceeds would be used toward the acquisition, as well as for additional working capital, the group said.
The rest of the acquisition would be funded by £2.2mln in cash, 8.4mln new shares and a £0.8mln deferred consideration to be paid on the first anniversary of completion.
Bright Bricks is a UK-based firm which constructs custom Lego brick statues and models for touring events. It is the largest builder of Lego models in the world with 60% of the global market share.
Live Company added that Simon Horgan from Bright Bricks had been appointed as executive director, while Trudy Norris-Grey, Bryan Lawrie, Andy Smith had been appointed as non-executive director, chief financial officer, and part-time chief strategic officer respectively.
David Ciclitira, executive chairman of Live Company, said the acquisition was the final goal of a three-goal strategy over the year that had also included the consolidation of its BRICKLIVE brand in Asia and the establishment of BRICKLIVE in the US.
He added that with the combination of businesses, Live Company will be “one of the most significant brick-based companies in the world”.