The acquisition will initially cost £400,000 - consisting of a cash payment of £300,000 and the issue of 263,505 ordinary shares in Freshwater. Also, an anticipated £30,000 will be paid for certain fixed assets. A deferred consideration of up to £700,000 will also be payable, dependent on Life's trading performance in the two years following completion.
Funding for the acquisition has been raised by a placing of 1,305,881 new ordinary shares at a price of 36p per ordinary share. The total raised was £0.47m.
Steve Howell, CEO of Freshwater UK, said: ‘The fact we have been able to raise funds through placing is a clear demonstration of the level of investor confidence that exists in Freshwater's unique regional-specialist strategy'.
He added: ‘This acquisition not only adds a new regional dimension to Freshwater but it also provides a platform for the extension of Freshwater's offering into Ireland in specialisms such as stakeholder communications and public affairs, especially in sectors such as health, technology, property, energy and transport.'
Founded in 1998 by managing director Darlene McCormick, Life has a turnover of £1.1m and six staff in its Dubin and Belfast offices. The firm works with retained clients such as Specsavers, Walkers, Gala and Expo events.