RedstoneConnect to buy Anders + Kern for £1.4m

RedstoneConnect has agreed to buy Easter Road Holdings and its subsidiary, Anders + Kern UK, for a cash consideration of £1.4m.

The AIM-listed provider of technology and services for smart buildings and commercial spaces announced a placing of up to 433.3m shares at 1.5p each to raise up to £6.5m, part of which will be used to finance the cash consideration of the acquisition. It said the net proceeds will also enable it to accelerate investment in the ongoing development of OneSpace, its occupancy management tool, to strengthen the development of its sales and marketing channels and to provide additional working capital for the enlarged group.

Redstone said the acquisition of Anders + Kern will bring significant benefits to the group in terms of expertise in the meeting room management space, an experienced sales and marketing team alongside an established customer base and channel partner network.

In the financial year to the end of March 2017, Anders + Kern - a distributor and integrator of meeting room booking systems and audio visual solutions - generated revenues of £3.37m, gross profit of £1.14m and adjusted earnings before interest, taxes, depreciation and amortisation of £346,000.

Chief executive officer Mark Braund said: "The acquisition of Anders + Kern is another important strategic development for RedstoneConnect. It broadens our smart building proposition, expands both our direct and indirect sales channels and it also provides the opportunity to leverage A+K's expertise to accelerate the development and deployment of OneSpace. We are delighted to welcome A+K's experienced sales, marketing and technology teams into our business which will add momentum to our 'go to' market strategy.

"Our focus remains on the establishment of high-margin, recurring revenues and a strong portfolio of proprietary intellectual property. We continue to believe that we are extremely well placed to capitalise on the significant market opportunity that exists within the Smart Buildings arena."

At 0910 BST, the shares were down 5.1% to 1.47p.