Eidos Plc now has definitive agreement for its triple acquisition of Domark Group Ltd, Big Red Software Co Ltd and Simis Ltd (CI No 2,717, 2,708). The Hampton Court, Middlesex company with the innovative video compression technology for videophones will acquire them via a placing of 1.68m new shares at 375 pence each, which will also raise a total of ú5.5m net of expenses. Eidos’s shares were suspended in July at 400 pence, which valued the company at around ú11m. The enlarged Eidos will have a market capitalisation of ú29.1m and net cash of ú3.7m when dealing commences on October 18. The new money will be used to repay outstanding group debt of ú1.9m – most of which was Domark’s – and for working capital. The placing shares will represent 21.6% of the enlarged group. Domark will cost ú10.78m in shares; Simis ú1.8m and Big Red ú350,000, of which ú100,000 will be paid in cash. Eidos is also applying for admission to the Official List of the London Stock Exchange. Charterhouse Tilney Securities are brokers for the placing.
