Pure Technologies continues aggressive growth plan

Shares in Canadian asset management technology specialist Pure Technologies jumped nearly 6% on news that the company had agreed to acquire The Pressure Pipe Inspection Company (PPIC) from Emerald Technology Ventures for up to Can$34.9 million (US$33.8 million).

The deal values PPIC at 2.4 times 2009 revenues, and will provide Pure investors with additional exposure to the growing theme of ageing infrastructure assessment and remediation. PPIC is a specialist in assessing the condition of large-diameter water and wastewater pipes, and will complement Pure’s existing expertise, whilst extending its geographical footprint.

The PPIC acquisition will be financed through a combination of cash (29%) and new shares of Pure stock (71%), priced at Can$4.44 each – a small premium to the previous market close. It is the second time Pure has turned to the equity market to fund growth this year – in February, it raised Can$30 million (US$28 million) in new share capital.