24th Jul 2014 12:03
LONDON (Alliance News) - Nasstar PLC said Thursday that it has acquired specialist IT outsourcer and hosted desktop provider Kamanchi Ltd for GBP2.5 million in cash and shares.
Nasstar will pay GBP1.5 million in cash, with an initial consideration of GBP500,000, and a deferred consideration of GBP1 million.
It will issue 12.5 million shares at 8.01 pence to the sellers of Kamanchi to make up the remaining GBP1 million of the consideration.
Nasstar expects the acquisition to immediately add to earnings.
Kamanchi's Commercial Director Raymond Pennie will remain with the company following the completion of the acquisition. Founding Director Kevin Winfield will remain with Kamanchi as a consultant for an initial three months.
Kamanchi generated earnings before interest, tax, depreciation and amortisation of around GBP450,000 on revenues of around GBP2 million in the year to end-June.
Nasstar said that the acquisition is consistent with its strategy to expand via selective acquisitions that can add intellectual property, technical expertise and sector knowledge.
"The acquisition of Kamanchi further enhances our standing in one of our core vertical markets and adds considerable user numbers to our Hosted Desktop community," said Chief Executive Nigel Redwood in a statement.
Shares in Nasstar were trading down 1.5% at 8.00 pence Thursday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
NASA.L