IN BRIEF: Marlowe agrees to acquire Optima Health for GBP130 million

Marlowe PLC - London-based safety and regulatory compliance services and software firm - Agrees ...

Alliance News 20 January, 2022 | 1:58PM
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Marlowe PLC - London-based safety and regulatory compliance services and software firm - Agrees to acquire Redditch, England-based occupational health and well-being company Optima Health Group Ltd for GBP135 million in an all-cash deal. Will raise around GBP130 million for the deal in a placement of shares, with the remainder paid from cash reserves. Optima will aid Marlowe's "compliance vision" and leadership in the regulatory compliance software and service arena.

Marlowe expects the acquisition to provide synergies of GBP2.0 million when combined with existing occupational health business within a year of completion. It will be 10% or more accretive to adjusted earnings per share. The move will boost the company's run rate revenue to around GBP400 million and earnings before interest, tax, depreciation and amortisation to around GBP71 million, before synergies.

Marlowe is now more confident in achieving GBP100 million of run-rate adjusted Ebitda before original target at the end of financial 2024.

Chief Executive Alex Dacre said: "The combination of Optima with our existing GRC businesses is highly complementary and will enable us to offer customers a broader range of services whilst delivering synergies. The proposed fundraising, alongside an intended refinancing of our existing bank facilities, will enable us to deliver on our strategy at pace with significant capacity for further acquisition-led growth."

Current stock price: 1,004.00 pence, down 3.9% on Thursday

12-month change: up 64%

By Elizabeth Winter; elizabethwinter@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Marlowe PLC 516.00 GBX 0.78 -

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