LONDON (Alliance News) - Proactis Holdings PLC Tuesday said it will buy e-auction software company Intesource Inc for USD3.9 million in cash, a deal that will boost its size and profitability as well as giving it increased expertise in the US market.
In a statement, the spend control software company said the net cash consideration for the deal is expected to be about USD2.9 million as Intesource is expected to have about USD1.0 million in cash at completion.
Proactis said Intesource has more than 25 clients and made an operating profit of USD610,000 on revenue of USD5.0 million in 2013.
"Intesource is an excellent strategic fit for Proactis, and marks a significant step in the group's growth strategy through the provision of increased scale, profitability and further growth opportunities," Proactis Chief Executive Rod Jones said in a statement. "In addition the group will benefit from synergies with its existing US operations".
"The depth of experience and software capability provided by Intesource bolsters the group's existing strong offering, and reflects the increasing need of our customers for e-auction services. We are now in a strong position to begin delivering these services to clients immediately and look forward to updating the market on our progress in due course," Jones added.
Proactis shares were up 2.2% at 55.70 pence Tuesday.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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