Rapid Technology has agreed to acquire the entire issued share capital of e-Learning company The Electric Paper Company for €15.5m.
Rapid will pay €7.5m in cash, while the firm will raise the remaining €8m, before expenses, through the issue of over 53 million acquisition shares at a price of 15 cent per share.
Rapid Technology also announced today that it will change its name to ThirdForce plc. The share proposal and the name change both need approval at an EGM on March 31.
The company's chief executive Brendan O'Sullivan said that ThirdForce has the potential to grow significantly and to become a major player in the e-Learning market.
'We hope to achieve our goal through a combination of acquisitions and organic growth. The acquisition of Electric Paper is the first step in this process,' he added.
Electric Paper specialises in the development and supply of educational products focused on the computer literacy market. In the year to the end of 2001, it had revenues of €7.45m and a pre-tax operating profit of €1.47m.
It employs 85 workers in five locations around the world, including the UK, Australia, the US and Canada. Its head office is located in Dublin, where it has a workforce of 64.
Rapid said it would appoint Electric Paper's managing director Jonathan Parkes, non-executive chairman Denis McMahon and non-executive director Michael Costello to join its board following the acquisition.
Rapid also announced today that it would transfer its and license its Screenkey technology to SK Interfaces, a private company whose directors are former Rapid employees Cormac Molloy and Mark McDonnell. This agreement is also subject to EGM approval.
Shares in Rapid closed up one cent to 16 cent in Dublin this afternoon. Trading resumed today, having been suspended on Christmas Eve.
