Rosslyn Data Technologies' shares dive on Integritie UK Ltd acquisition

Shares in Rosslyn Data Technologies dived more than a quarter after it agree to conditionally acquire Integritie (UK) Ltd for total initial consideration of £2.588m, plus an earn-out and plans to raise up to £5m.

There was an earn-out of up to £750,000 based on revenue targets. The company was also raising a total of about £5m. This was via placings of £2.29m and £2.21m at 4.5p a share, plus an open offer of up to £0.5m.

Net proceeds of the firm placing and open offer would be used to part fund the acquisition of Integritie. Net proceeds of the VCT/EIS placing would go to general working purposes.

Chief executive Roger Bullen said that Integritie was a strategically important acquisition, giving Rosslyn the ability to analyse unstructured as well as structured data.

"Integritie's customer base is complementary to our own and the acquisition will enable us to cross sell both structured and unstructured data services to an enlarged customer base," he said.

"In due course, the acquisition should enable us to extract significant synergies not only through cross selling but also operational efficiencies and cost savings as a result of the increased scale."

At 14:00 BST, shares in AIM-listed Rosslyn Data Technologies were down 28.57% to 5.62p each.