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Fulcrum Utility acquires electrical infrastructure group Dunamis
Energy provider Fulcrum Utility entered into a conditional agreement to acquire electrical infrastructure services business the Dunamis Group for a total of £22m.
Fulcrum said on Friday that the acquisition, funded in part by the £10.4m the firm raised by way of a placing of 17.4m new shares priced at 60p each, would "significantly expand and extend" the AIM-quoted group's capabilities and specialist knowledge in the electrical infrastructure services sector.
Dunamis, which reported revenues of £10.2m and an EBITDA of £1.8m from the six months leading to 31 October 2017, was expected to be highly accretive to Fulcrum's underlying earnings per share in the first year following completion.
The remaining £11.2m owed as part of the agreement was to be satisfied by way of an issue of £11.2m new ordinary shares to Dunamis and a payment of £1.5m from Fulcrum's existing cash reserves.
Martin Harrison, chief executive of Fulcrum, said, "This acquisition meets key strategic goals for Fulcrum - accelerating our future growth through the cross-selling of gas and electrical connection services, increasing electrical asset adoption opportunities and significantly expanding and extending our direct delivery capability within the electrical infrastructure market."
Wayne Hayes, Dunamis' chairman, added, "This transaction marks an exciting milestone in the development of Dunamis and we are delighted to be entering the next stage of our growth strategy under Fulcrum's ownership. I believe that the enlarged group will offer a highly attractive proposition to the utility services market focused on outstanding technical expertise and project delivery."
As of 0840 GMT, shares had advanced 4.48% to 61.85p.