City software firm in new share launch

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Advanced software group WANdisco has raised £19 million on the Stock Market which could fund potential acquisitions.

The Sheffield and Silicon Valley company, whose products are used by some of the world’s best-known corporations, is placing up to two million ordinary shares.

The shares were offered to institutional investors using a process known as “accelerated bookbuilding.”

The process is often used when a company needs extra funds to seize an opportunity to buy another business.

Institutions were invited to make confidential bids for shares and the placing price of 950 a share was set when the book closed.

WANdisco’s Sheffield born chief executive, David Richards, said: “I am hugely encouraged by the significant level of support we have received from our existing shareholders, and from those new institutions which have today chosen to participate in our growth.”

WANdisco says its opportunities for growth have accelerated in recent months.

It says funds raised through the placing will be used to pursue those opportunities.

News of the funding bid came as WANdisco published its interim results.

WANdisco also revealed it is joining forces with Palo Alto-based enterprise software platform specialist Hortonworks to develop systems that guarantee global enterprises 100 per cent availability for all their data centres.

WANdisco’s bookings rose from $3.39 million to $6.10 million for the six months to the end of June and revenue increased from $2.92 million to $3.51 million.

The company made a loss on earnings before interest, taxes, depreciation and amortisation of $3.32 million, compared with a profit of $350,000 for the same period last year.