Castleton Technology Acquires Australian Public Housing Software Specialist Kinetic.
M2 EQUITYBITES-December 12, 2017-Castleton Technology Acquires Australian Public Housing Software Specialist Kinetic
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12 December 2017 - UK-based software and managed services provider Castleton Technology plc (AIM: CTP) has acquired Australian community housing software specialist Kinetic Information Systems Pty Ltd, the company said.
The initial cash consideration is AUD 2m (USD 1.51m), with a deferred cash payment of AUD 0.5m (GBP 0.3 m).
A further cash payment of up to AUD 0.5 m (GBP 0.3m) may also be payable dependent on financial performance.
Kinetic is Australia's provider of enterprise resource planning software solutions for the Australian Community Housing sector
The firm posted revenue of AUD 2.3m (GBP 1.3m) and normalised EBITDA of AUD 0.6m (GBP 0.3 m) for the year to 30 June 2017.
Kinetic adds scale, customers, skills, market knowledge and specific Australian IPR, the company said.
It adds over 50 customers into which Castleton can cross-sell its other products with the combined customer base giving Castleton circa 40% of the market share for Tier 1 providers in Australia.
Kinetic management and staff to remain within the group to target further growth in Australia.
The acquisition is expected to be earnings enhancing in the coming financial year to 31 March 2019.
Castleton Technology is a supplier of complementary software and managed services to the public and not-for-profit sectors.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Dec 12, 2017|
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