28 July 2015 – acquisition
The group has acquired Stontronics, a UK based manufacturer and distributor of power supply units, transformers and adaptors, for cash consideration of up to £6.5m. The initial payment is expected to be £5.5m with up to another £1.0m payable depending on the future financial performance of the company. To fund the acquisition, Stadium proposes to raise £6.0m through a placing and open offer at 110p per share. The acquisition is in line with the group’s strategy of making targeted, complementary acquisitions which strengthen the group’s technology offering as well as providing synergies and cross-selling opportunities across the group. We retain our recommendation of BUY.