Deal of the day
In line with its stated strategy to make an investment in the technology sector, the London-listed Eco City Vehicles has agreed to acquire Tax Computer Systems for £73m (US$87m).
Established for over 25 years, TCS supplies tax software to large corporations and the accountancy sector in the UK and Ireland. Its blue-chip customer base includes 43 of the FTSE 100 companies and 19 of the top 20 accounting firms.
In 2015, the firm recorded earnings before interest, taxation, depreciation, and amortisation (ebitda) of £6.6m on revenues of £12.8m.
ECV will meet the bulk of the acquisition cost from the proceeds of a £45m share placement, with the balance coming from existing cash and debt facilities.
The deal constitutes a reverse takeover under AIM Rule 14 and will therefore require the approval of ECV shareholders at a general meeting on 25 July.
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