AIM-listed vocational training company Melorio has acquired government-funded training providers Zenos and Zenos Learning for up to £33 million.

AIM-listed vocational training company Melorio has acquired government-funded training providers Zenos and Zenos Learning for up to £33 million.

The acquirer funded the deal with £23 million of debt from Barclays and Clydesdale banks and the issue of 7.6 million Melorio shares to George and Sandra Anderson, the owners of the acquired companies.

The initial payment to the vendors is approximately £20.6 million, including £14.1 million in cash and the remainder in shares, valued at a premium to the current share price. Further payments depend on the performance of the businesses.

Mid-market advisory firm Catalyst Corporate Finance and law firm Pinsent Masons advised the vendors on the deal.

Richard Sanders, a partner at Catalyst, comments, ‘It is clear that at a time when the UK government is focusing on up-skilling the workforce that Zenos will have an important part to play.’

Based in Oxfordshire with academies throughout the UK, the Zenos companies provide vocational training to the IT sector.