SurfStitch Group Limited
(ASX:SRF) is set to acquire 100 percent of the shares in Surf Hardware International Pty Limited for an enterprise value of $23.7 million.
The total consideration for the acquisition will be paid fully in cash.
SurfStitch Group also announced a fully underwritten institutional placement to raise approximately $50 million.
Proceeds from the placement will be used to fund the repayment of certain debts of SHI, in addition to providing the company with the flexibility to pursue further strategic growth initiatives including acquisition opportunities.
SurfStitch Group recorded a net loss of $47.28 million at 30 June 2015.
