Cloud services firm IMImobile buys Infracast for £8.2m
Cloud comms software and service provider IMImobile will acquire multi-channel messaging and middleware company Infracast to extend its capabilities for financial services. IMImobile will spend £8.2m on the deal in cash and shares. Infracast will be integrated over the next six months.
South East Deals, Technology Muhammad Aldalou

Cloud communications software and services company IMImobile has agreed to acquire Infracast, a Berkshire provider of multi-channel messaging applications and middleware, in a deal which strengthens its capabilities and opportunities in the financial serves sector.

The AIM-listed group said the deal is "highly complementary" to both its product set and customer base and is expected to be immediately earnings enhancing.

Infracast is a technology partner to Telefonica, and through that partnership provides services to a number of tier one banks. Following the integration of the acquisition, the enlarged group will provide communication software and services to four of the top five tier one retail banking groups in the UK.

The business will be purchased for an initial sum of £8.2m in cash and shares with a further deferred consideration based on the company meeting gross profit and EBITDA targets over the next three years.

Jay Patel, chief executive of IMImobile, said: "The acquisition of Infracast helps us strengthen our capabilities and opportunities in the financial services sector, a sector which is profoundly impacted by the shift of consumer behaviour towards digital and mobile technologies.

"We expect to rapidly integrate the acquisition over the next six months and take advantage of the close synergies in terms of technology, partnerships, client base and the experienced senior management team."

Infracast is based in Reading and employs 31 staff. In the year to 31 May 2016, the company reported a turnover of £10.4m, gross profit of £3.1m and EBITDA of £400,000.