- Information and data management services firm Restore has entered into an agreement to acquire Rainbow HoldCo Limited, which trades as EDM Group Limited.

This includes a proposed placing to raise gross proceeds of approximately £40 million.

The acquisition is “transformational” for the Group's Digital business and consistent with Restore's strategic priorities.

The Placing Shares represent approximately 8.7 per cent. of the Company's existing issued share capital. The placing price represents a discount of approximately 5.2% to the closing price of 385 pence per share on 29 April 2021

The net proceeds of the placing, which are expected to be approximately £38.7 million, will be used to reduce the Company's net debt, to fund working capital and for general corporate purposes.

Charles Bligh, chief executive of Restore, commented: "I am delighted with the acquisition of the EDM UK business and the value this will create for shareholders. EDM is a business that is well known to us, it is well invested with a loyal customer base and a terrific team of over 430, each of whom we welcome into the Group today.

“Bringing EDM's scale and capabilities together with ours will deliver even better offerings for customers and build an even stronger UK player in the management of physical and digital data.

"This acquisition is in line with the growth strategy of the business outlined over the last two years, which is to grow our Records Management business and to enhance the product portfolio and market share in Restore Digital." He added.

At 9:29am: [LON:RST] Restore PLC share price was 0p at 352.5p

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