8th Sep 2015 08:19
LONDON (Alliance News) - MXC Capital Ltd on Tuesday said it is to acquire up to 29% of Sagacity Solutions Ltd, a 'big data' analytics business.
The AIM-listed merchant bank, which advises companies in the technology, media and telecommunications sectors, said it will has invested GBP4.8 million in return for a 19% stake in the company.
It may invest a further GBP1 million of development capital, and has the option to acquire a further 7.5% stake.
"The team at Sagacity has developed world class software that they are already providing to a blue chip client base. We believe this technology has very significant potential and we are excited by the opportunity to take this product to a wider market," Chairman Peter Rigg said in a statement.
Sagacity generated GBP1.3 million in earnings before interest, tax, depreciation and amortisation in the year ended October 31, 2014 on revenue of GBP4.8 million.
The acquired company expects to generate more than GBP2 million of EBITDA on GBP7 million of revenue in the current year.
Shares in MXC were up 3.9% at 3.22 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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