What did you mean by losses increasing?My understanding is that...

What did you mean by losses increasing?
My understanding is that Smoothwall is profitable and hence the acquisition improves FZO’s bottom line.
(if smoothwall has prior accumulated losses, these would only be of benefit as acting to reduce future tax
liabilities for the UK activities).

I’m taking my full entitlement but won’t be selling any holding at present as given pre deal FZO traded at 18x revenue and has acquired smoothwall at 4.7 times revenue… then the combined entity is theoretically about 9x revenue.
The Approx 10% FZO share price rise post announcement lifts this to trading at Approx 10x revenues… but expect we will see a further strong upward re-rating in coming months once FZO management can evidence it can successfully combine the entities and show the beginning of delivery of the benefits they have flagged from the deal.
With distribution channels in place and education sector funding tailwinds for student online activities … it will seem likely this should happen sooner rather than later.

while I’m no expert… I think this rationale is also why FZO had no trouble securing funding for this deal incl fully underwriting the SPP. In many deals the share price subsequently falls quickly to the CR price, but this has not occurred here (in fact the opposite happened with share price jump of 10%) due to the attractive/compelling nature of the deal.

At current FZO share price, the post acquisition entity looks pretty attractive