Partner Article

Wetherby’s Proactis buys software firm for £1.55 million

Wetherby-based Proactis Holdings PLC, the specialist spend control software provider, has announced that is has acquired Intelligent Capture Ltd.

Intelligent Capture is a provider of document scanning and optical character recognition services, and will support the launch of PROACTIS’ new offering, ‘Activate’.

The acquisition brings a reported 40 new customers to the Group with significant scope for cross-selling opportunities, annual recurring revenue to be acquired as part of the acquisition is anticipated to be in excess of £1.25 million and total revenues of approximately £1.5 million.

The consideration for the acquisition is £1.55 million, payable in cash and shares. The net cash consideration is approximately £1.4 million as IC has approximately £150k of cash at completion.

For the year ended 31 March 2014, the unaudited accounts of IC showed turnover of £1.41 million on which it made an operating profit of £0.21 million. Net assets at that date were £300k.

Rod Jones, CEO commented: “IC is a crucial strategic acquisition for PROACTIS, accelerating and de-risking the execution of Activate. We have developed Activate through listening to the needs of our customers - there will be obvious cost benefits to them and these benefits will be replicated for their vendors.

“In addition, IC consolidates the Group’s existing excellent customer base and has encouraging levels of recurring revenue and profitability.

“We have worked successfully with IC for some time, partnering in several key accounts. Its expertise in this area is exceptional and we look forward to working with the team to drive PROACTIS’ strategy forward, and to deliver returns for shareholders.”

This was posted in Bdaily's Members' News section by Clare Burnett .