Shares digital

Industrial machinery and equipment auctioneer GoIndustry (GOI:AIM) has conditionally agreed to buy global provider of capital asset auction and valuation services, DoveBid, for £17 million. In addition, GoIndustry, which recently admitted that 2007 full-year profits would come in below market expectations, has conditionally raised £18.5 million via a proposed placing of 185 million shares.

The company says the acquisition of DoveBid is a transformational deal, helping to add significant strength to current operations in the US and boosting growth potential. The deal is also expected to create cost savings of £4 million in 2008 and £5 million in 2009 and beyond, and should be earnings-enhancing for 2008 onwards. The shares slipped 6% to 11p following the news, but have since bounced back up to their current 12p.

Shares says: The shares have had a rough ride lately, but a strong pipeline of business should set it in good stead.