Gentrack raising $90m to repay acquisitions debt

AIRPORT and utilities software provider Gentrack is on track to raise $90 million new capital, which will be used to pay off debt following a string of offshore acquisitions.

Since announcing the capital raising early this month, it has raised $31.5 million from institutional investors, followed by $25.8 million from retail investors.

While the retail shortfall bookbuild began yesterday, the $90 million capital raising is fully underwritten by Deutsche Craigs and UBS New Zealand.

Gentrack shares are up more than 41% on a year ago, and closed down 1c yesterday at $6.89.

Following the acquisition of Evolve Parent and Evolve Ana lytics in last June for £23 million ($NZ44.2 million), Gentrack’s debt rose to about $90 million.

Gentrack said the proceeds raised through the offer will be used to pay off its existing bank debt, and would provide funding capacity for more acquisitions and towards growth opportunities.

Gentrack has completed four strategic acquisitions since March last year, across both its utilities and airports divisions and now services more than 200 utility and airport sites in more than 30 countries.

Aside from the recent Evolve purchase, Gentrack last year acquired UK billing and customer information systems firm Junifer Systems for $74.6 million and European airport software developers Blip Systems and CA Plus, for $20.3 million, BusinessDesk reported.