Irish Travel Software Firm Datalex Planning To Raise €25m
According to The Irish Independent, Irish travel software firm Datalex is planning to raise €25 million, €16.8 million of which is already conditionally committed.
The travel software company will use the funds to support the implementation of new revenue opportunities and to accelerate investment in its Software as a Service product strategy, according to a statement from the group.
Datalex sells software to groups such as Aer Lingus, JetBlue, and Air China that help generate additional revenue from customers through ancillary products.
The company is raising the funds by way of a Cornerstone Placing (€14.7m), Firm Placing (€4.2m) and Placing and Open Offer (together €6.1m) of newly issued ordinary shares in the group.
The new ordinary shares will be issued at a price of €0.50 each.
The Cornerstone Placing will be carried out through a combination of commitments from existing shareholders including Dermot Desmond’s IIU Nominees, Pageant Investments, and investor Nicholas Furlong.
IIU Nominees, Pageant and Mr Furlong will also participate in the Open Offer in respect of their respective eligible pro rata entitlements totalling €2.1m.
This will result in Desmond’s share of the company passing 30pc, the threshold at which a shareholder would be required to make an offer for a company under Irish stock market Takeover Rules.
However, the Irish Takeover Panel has granted a wavier, subject to approval from other shareholders.
Reported in the Irish Independent, Sean Corkery, CEO, Datalex, said “Today marks an important milestone for the group. We are preparing for the next stage towards growth, and it is important that the group has the right capital structure in place for this phase.”
The company is also proposing to remove its existing ordinary shares from trading on the regulated market of Euronext Dublin and to apply for admission to trading on Euronext Growth.
The company stated that Euronext Growth is “a more suitable regulatory environment for a business of Datalex’s size and structure, and provides more flexibility in relation to corporate transactions, should such opportunities or initiatives arise or become relevant to the group in the future.”
© 2021 Hospitality Ireland – your source for the latest industry news. Article by Conor Farrelly. Click subscribe to sign up for the Hospitality Ireland print edition.