Inspiration Healthcare Group PLC (LON:IHC) said it has agreed to acquire S.L.E. Limited, a designer and manufacturer of ventilators and capital equipment used in neonatal intensive care, for a consideration of £18mln.
The medical technology firm said it will complete the acquisition using £16.2mln in cash while the remaining £1.8mln will be paid in shares.
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Inspiration said the acquisition is expected to be earnings enhancing in the short to medium term with “significant commercial synergies”.
To help fund the purchase, the company said it has raised £16.5mln through a placing and subscription of around 25.4mln new shares at a price of 65p each, a 1.5% discount to its closing price on Thursday, to new and existing investors.
Meanwhile, the company also said it is proposing to raise an additional £0.5mln by way of an open offer to qualifying shareholders of up to 767,617 new shares at the placing price. The group has unveiled a new £5mln revolving credit facility with HSBC as well.
"We are delighted to have received such strong support for the Fundraising to drive our growth strategy and the acquisition of S.L.E. Limited”, Inspiration Healthcare chief executive Neil Campbell said in a statement.
“Bringing the two companies together will significantly enhance our position as a leader in the global neonatal intensive care sector and deliver a number of benefits that include broadening the group's product portfolio, an enlarged global distribution network, added manufacturing facilities and significantly increasing revenues and earnings", he added.
Shares in Inspiration Healthcare jumped 6.1% to 70p in early deals on Friday.