Not a company to let the grass grow under its feet, Digital Barriers has today announced the proposed share placing at 145p per share to raise approximately £10m (after expenses). The funds will be predominantly used to finance the acquisition of a fourth core technology, “which is currently in advanced discussions”. This would be Digital Barrier's 13th acquisition.
At the time of the half year results a couple of weeks ago – see Digital Barriers: Profitability is in sight– MD, Colin Evans, confirmed that the company was in a position where it had the potential to grow (and become profitable) without adding further businesses into the fold. The management team didn’t, though, rule out further acquisitions if they could add “new synergistic high end technologies”. This acquisition was undoubtedly already on the cards when we spoke.
Some significant wins a week ago helped to confirm that the company’s stated strategy of focusing on three core technologies to penetrate international markets was bearing fruit – see Digital Barriers: Strategically significant wins. It is with great anticipation that we wait to see what a fourth core technology, which will likely require a period of integration with the rest of the portfolio, will bring to the company’s offering.