2nd Mar 2015 09:13
LONDON (Alliance News) - Castleton Technology PLC Monday announced that it has acquired social housing managed services provider Keylogic Ltd and software provider Opus Information Technology Ltd, for a total consideration of GBP5.5 million, while saying it has sold its Montal consultancy business to management for GBP600,000.
The software and managed services provider said it acquired Keylogic for GBP3.8 million, a business which has expected sales of GBP3.8 million and earnings before interest, taxes, depreciation and amortisation of GBP1.1 million for the financial year ending April 30.
Alongside the Keylogic acquisition, Castleton also acquired Opus Information Technology, a specialist software provider to social housing market, for an initial GBP0.5 million. It said the maximum payable for Opus, depending on performance targets, is GBP1.5 million.
Castleton disposed of the consultancy division of Montal Computer Services for GBP600,000 to its management, a move it said will allow it to focus on its portfolio of specialist software products.
The company said all of the transactions are expected to accelerate the pace of its growth.
"Castleton is a fast growing company, and I expect these two new additions to accelerate that pace. We shall continue to seek opportunities to further build out our strong position in the public and not for profit sector. I wish the management of our disposed consultancy business very well," said Chief Executive Ian Smith in a statement.
Castleton shares were up 6.6% to 2.42 pence Monday morning.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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