The Northcoders Group PLC (LON: CODE) share price fell 1.94% after announcing the acquisition of Tech Returners Limited, a leading UK technology re-training business catering to senior-level personnel for a sum of £1.576 million, to be paid in cash and shares.
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The decline was negligible given the significance of the acquisition, which will strengthen Northcoders’ Business Services division while adding a new revenue stream to the company’s rapidly expanding corporate-focused business.
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The acquisition couldn’t be a better business fit for Northcoders, given that Tech Returners offers remote training and placement of senior-level professionals seeking to return to the workplace in the technology industry. The company usually upskills the individuals, most of whom companies sponsor.
Tech Returners also trains the employees of large corporations if their employer wants them to learn a particular tech skill. The company has worked with leading corporates such as the BBC, AutoTrader, The Guardian, Lloyds, checkout.com and booking.com, among others.
Northcoders expects to fully integrate Tech Returners into the enlarged Group by the end of Q2 2023.
Northcoders will pay the initial consideration of £1.326 million via a £0.326 million cash payment combined with the issuance of 322,580 new ordinary shares of £0.01 each in the capital of the Company. The remaining £0.25 million will be paid in cash twelve months after the deal’s completion.
Tech Returners founders Rebecca Ferguson (néeTaylor ) and James Heggs will join Northcoders as senior leaders. The company will continue operating as part of Northcoders but will retain its brand and operate as a standalone business unit.
Rebecca is an experienced human resources leader, having worked for decades in the tech industry. At the same time, James is an experienced Chief Technology Officer and has worked as a consultant in the tech sector for many years.
Northcoders revealed that Tech Returners generated £565,000 in revenues during the year ended 30 November 2021, with the figure rising to £800,000 in the year ended 30 November 2022. The company broke even in 2022 and is headed for profitability in 2023.
*This is not investment advice.
The Northcoders share price chart.
The Northcoders share price fell 1.94% to trade at 304.00p, from Monday’s closing price of 310.00p.
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