Stephenson Harwood advises Incadea on acquisition and share placing

Stephenson Harwood has advised Incadea on the acquisition of RC Real Business Solutions (RCRBS) for €12.5m (£10m) in cash together with an associated placing by the company’s nominated adviser and joint broker Cenkos Securities of 11,100,000 ordinary shares at a placing price of 104p each to raise £11.5m before expenses.

N 1 Singer is also acting as joint broker on the placing.

Incadea is a provider of enterprise software and services to the global automotive dealership industry.

The proceeds of the placing will be applied in part to fund the acquisition, with the balance used to support Incadea’s new product development based on Microsoft Dynamics AX and also to act as working capital for the enlarged group.

The balance of the RCRBS purchase price is being met from a €5m tranche drawn under an amended and restated bank facility agreement with Citibank (London branch), the terms of which Stephenson Harwood also advised upon.

The acquisition of RCRBS will provide Incadea with a direct presence in Germany and is representative of its strategy of augmenting organic growth through selective acquisitions in order to increase its direct sales routes and international presence.

The Stephenson Harwood corporate finance team was led by Incadea relationship partner Duncan Stiles, with Guy Morgan and Tom Page assisting. The finance advice was given by partner James Linforth assisted by Hannah Jones.