- Dods said it had agreed to acquire Meritgroup for £22.4m in a cash and shares deal.

Meritgroup, a provider of data services and software code, was established in 2004 in the UK and India.

'The Directors believe that the Acquisition will be a transformational deal for the Group and will enable it, amongst other things, to diversify its service offering into faster growing, higher margin activities,' the company said.

In order to part fund the cash element of the deal, Dods was currently concluding an equity fundraising process, and also proposed to enter into a new debt facility.

The completion of the acquisition would depend on the successful completion of the company's fundraise and the approval by shareholders at a general meeting, though the company said it was 'confident' in a successful outcome of the Fundraise and added that Lord Ashcroft, a 44% shareholder, was fully supportive of the acquisition.

In the financial year ended 31 December 2018, Merit generated revenue of approximately £9.2m, up from £8.6m a year earlier, adjusted earnings (EBITDA) of approximately £1.9m, up from £1.4m and profit before tax of approximately £1.2m, up from £1.1m.

At 8:42am: [LON:DODS] Dods Group PLC share price was 0p at 8.25p

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