Incadea Plc announced that it has raised around £11.5 million (€14 million) to partially fund the purchase of Germany-based firm RC Real Business Solutions GmbH (RCRBS). The Austrian firm issued 11,100,000 ordinary shares at 104 pence apiece for the said deal, according to The Wall Street Journal (WSJ).
RCRBS develops and markets the German version of automotive software incadea.engine and has accumulated over 50 years of experience in Germany's market. Most of the customers of the said business are dealerships. The firm provides software services for GME (Opel), VW, BMW, Renault dealership, Ford, and Kia, the report detailed.
Under the terms of the acquisition deal, the preliminary consideration for RCRBS' share capital is €12.5 million (around £10.3 million). Incadea paid €5 million (around £4.1 million) to RCRBS in cash upon completion of the acquisition deal. The remaining €7.5 million (around £6.2 million) is payable after receipt of the proceeds from the shares issued, the report explained.
The deal provides Incadea with access to the automotive markets in Germany. The transaction also gives the firm a link to a well-connected sales force which could improve the company's margin, WSJ reported.
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