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RNS Number : 4016U
Gresham Technologies PLC
29 July 2020
29 July 2020
Gresham Technologies plc
Acquisition of Inforalgo Information Technology Limited
Gresham Technologies plc (LSE: "GHT", "Gresham", "Company" or
the "Group"), the leading software and services company that
specialises in providing solutions for data integrity and control,
banking integration, payments and cash management, is pleased to
announce that it has completed the acquisition of the entire issued
share capital of Inforalgo Information Technology Limited (the
"Acquisition") on 28 July 2020 for a total consideration of up to
GBP3.6 million, comprising initial consideration of GBP2.3 million
and deferred consideration of up to GBP1.3 million.
The Acquisition is expected to be immediately earnings enhancing
although not materially so for FY20 and adds cloud-based financial
markets integration solutions to Gresham's portfolio of Clareti
applications, thus increasing the Group's addressable market. The
Acquisition has a clear financial rationale and supports Gresham's
strategic plan to create a global enterprise financial technology
business.
Highlights of the Acquisition are as follows:
-- Adds over GBP1.2 million of annualised recurring revenues
("ARR"), bringing total Clareti ARR upon acquisition to GBP11.9
million.
-- Expected to be earnings enhancing within the first full
financial year following Acquisition.
-- Acquires approximately 30 new customers, comprising global
banks, asset managers, market participants and market access
providers.
-- Enlarges Gresham's customer footprint in North America, which
accounts for 88% of the acquired ARR.
-- Complements and expands Gresham's existing regulatory data
quality and exception management solutions and creates an
opportunity to sell higher-value end-to-end regulatory
solutions.
-- Extends Gresham's existing portfolio of cloud connectivity
services and integration adaptors.
-- Adds 18 staff with deep expertise in complex financial
markets integration, straight-through-processing and secure cloud
hosting solutions.
About Inforalgo Information Technology Limited ("Inforalgo")
Inforalgo, based in Solihull, UK are specialists in connectivity
and intelligent automation solutions for financial services
institutions enabling straight through processing and real-time
regulatory reporting. Inforalgo's in-house developed integrated
toolkit, provided as a hosted managed cloud service or on-premise
solution, includes over 80 adaptors enabling rapid integration to
market venues, traders and exchanges.
In the year ended 31 March 2020, Inforalgo generated revenues of
GBP1.4 million, of which almost GBP1.2 million was recurring
software revenue and recorded a statutory loss of GBP0.5 million.
For the same annual reported period Inforalgo recorded an adjusted
EBITDA marginally ahead of breakeven, after being adjusted to
remove exceptional one-off items and non-recurring management
charges from the selling shareholders. Inforalgo had gross assets
as at 31 March 2020 of GBP0.3 million.
Consideration
The initial consideration of GBP2.3 million is being satisfied
in cash from Gresham's existing reserves, this initial
consideration includes full settlement of selling shareholder loans
and trading balances. The deferred consideration of up to GBP1.3
million will be paid in two sums with up to GBP0.9 million payable
on the 12-month anniversary of completion of the Acquisition
("Completion") and up to GBP0.4 million payable on the 18-month
anniversary of Completion, subject to certain ARR retention targets
being achieved during those periods.
Ian Manocha, Gresham CEO, commented:
"This exciting deal will enable us to extend our portfolio of
Clareti cloud connectivity services to include further trading and
regulatory reporting venues alongside our bank, ERP and financial
messaging connectivity services. It strengthens our capability to
offer end-to-end control of regulatory reporting for our customers,
enhances our US footprint and creates cross and upselling
opportunities, and builds our recurring revenue base."
I take the opportunity to extend a very warm welcome to the
Inforalgo team and customers, and we look forward to building
together on their successes in the market."
Phil Flood, Chief Commercial Officer, Inforalgo, commented:
"Financial markets are experiencing increasing levels of
regulatory reporting as well as demands to increase the speed of
reporting. Joining with Gresham will enable us to take our
innovative real-time regulatory reporting offerings to a global
market and enable our customers to access the full power of the
Clareti platform to provide confidence in their data."
John Wilson, Chief Operations Officer, Inforalgo, commented:
"Gresham has a deep understanding of financial markets, modern
software development processes and cloud service delivery models.
They also share our passion for exemplary customer support and
understand the needs of global
customers. We are delighted to be joining Gresham."
Enquiries
+44 (0) 207 653
Gresham Technologies plc 0200
Ian Manocha
Tom Mullan
+44 (0) 207 496
N+1 Singer (Financial Adviser and Broker) 3000
Shaun Dobson / Iqra Amin (Corporate Finance)
Tom Salvesen (Corporate Broking)
Inside information
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation (EU) No. 596/2014 ("MAR"). Upon the
publication of this announcement via a Regulatory Information
Service ("RIS"), this inside information is now considered to be in
the public domain.
Note to editors
Gresham Technologies plc is a leading software and services
company that specialises in providing real-time solutions for data
integrity and control, banking integration, payments and cash
management. Listed on the main market of the London Stock Exchange
(GHT.L) and headquartered in the City of London, its customers
include some of the world's largest financial institutions and
corporates, all of whom are served locally from offices located in
the UK, Europe, North America and Asia Pacific.
Gresham's award-winning Clareti software platform is a highly
flexible and scalable platform, available on-site or in the cloud,
designed to address today's most challenging financial control,
risk management, data governance and regulatory compliance
problems. Learn more at www.greshamtech.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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