Tech group snaps up TextLocal
Cheshire mobile technology company TextLocal has been acquired by a listed group in a deal worth more than £13m.
The Chester-based firm, which provides cloud-based mobile messaging services for small and medium-sized businesses is to become part of IMI Mobile, which is headquartered in High Wycombe.
The deal is for an initial consideration of £10m in cash and £1m in IMI shares. The deferred consideration is up to £2.15m.
IMI said the acquisition of TextLocal is complementary to the group's existing services and provides significant opportunities to introduce TextLocal's offering into new international markets. It added the company's team was a "key attraction" for IMI.
TextLocal employs 30 staff and also has an office in Malvern. It posted revenue of £7m and a profit after tax of £1m for the year to 30 November 2013.
Jay Patel, chief executive of IMI, said: "The acquisition of TextLocal helps us build out our set of smarter mobile engagement products and solutions.
"TextLocal has a best-in class product that addresses the small and medium-sized businesses segments that we do not currently serve and we see opportunities to cross-sell capabilities as well as an opportunity to leverage our global distribution and operator relationships.
"We expect to integrate the acquisition rapidly into the group over the next six months and we expect it to be earnings enhancing from the second half of the current financial year ending 31 March 2015."
TextLocal was advised by GP Bullhound.