17th Sep 2015 08:07
LONDON (Alliance News) - IMImobile PLC Thursday said that it has agreed to buy South Africa-based mobile services provider Archer Digital Ltd for USD5.6 million in cash, and said that it is confident of meeting full-year market expectations.
The mobile software and services provider said that it will pay an initial consideration of USD5.2 million and a deferred consideration of up to USD0.4 million payable 90 days after completion.
In 2014, Archer reported an adjusted profit after tax of GBP0.5 million and revenue of GBP5.5 million, and had net assets of GBP1.2 million at the year-end.
IMImobile said it expects the acquisition to be earnings neutral in the current year and earnings enhancing thereafter.
IMImobile added that trading in the six months to September 30 has been in line with expectations and that investment in sales, marketing and product development activities will be increased in the second half of the year in order to accelerate growth in future periods. It said it is "highly confident" of enlarged group prospects and of achieving full-year market expectations.
"We see tremendous opportunities in Africa for enterprises to use mobile as a communication channel driven by the explosion of mobile devices and better networks as well as the limitations of the physical infrastructure. Archer has been successfully working with leading blue chip clients over many years and we believe that combined with IMImobile's software and solutions we will be able to leverage the existing client relationships and extensive experience of the Archer team to seize this great opportunity," Chief Executive Jay Patel said in a statement.
Shares in IMImobile were trading up 2.4% at 150.00 pence Thursday morning.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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