March 31 IT outsourcing company Regenersis Plc
said it bought Blancco Oy Ltd, a Finnish data erasure
company, for 60 million euros to win business from upcoming data
security regulations in Europe.
Shares in Regenersis jumped as much as 12 percent after it
announced the purchase, of which 58.7 million euros ($80.7
million) will be paid in cash and the rest in stock.
"They have made a big acquisition by acquiring high-margin
business Blancco which will boost their bottom-line", Panmure
Gordon & Co analyst Paul Jones told Reuters.
Data erasure technology destroys electronic data on a hard
disk or other digital media to protect confidential information.
Regenersis said a European General Data Protection
Regulation expected to come into force next year will increase
the compliance burden on companies holding consumer data.
"With new European legislation due to come into force in
2015, the deal will provide further growth opportunities across
Europe and expand our presence in this exciting sector",
Regenersis spokesman Mike Bartlett told Reuters.
The company said it plans to fund the purchase of unlisted
Blancco with 100 million pounds ($166 million) it raised through
a share placement.
Shares at Regenersis, whose clients include HTC,
Sony, LG Electronics among others, traded
as high as 400.54 pence before easing back to 388.98 pence at
($1 = 0.6011 British Pounds)
($1 = 0.7271 Euros)
(Reporting by Aastha Agnihotri in Bangalore)