Sanderson buys software firm for up to £1.9m and hints at further acquisitions

SOFTWARE and IT services group Sanderson has acquired Solihull’s Proteus Software for up to £1.9m.

Coventry-based Sanderson – which specialises in multi-channel retail and manufacturing markets in the UK and Ireland – will pay an initial payment of £1,400,000 on completion and a deferred consideration of up to £500,000 in 2016 depending upon certain performance criteria being met in the 12 month period to 5 December 2015.

Proteus is a provider of specialist warehouse management software to businesses operating in the areas of third party logistics, warehouse management and supply chain distribution.

For the year ended 30 September 2014, Proteus reported revenue of £1.98m and a loss before taxation of £3,000. Net assets at were £590,000 and at the date of acquisition, Proteus had net assets of approximately £600,000, of which just over £400,000 was cash.

Sanderson chairman Christopher Winn said: “Proteus is a complementary acquisition for Sanderson and the Proteus products and customers will complement the group’s own products, services and customers within its multi-channel retail and manufacturing businesses.

“The group continues to consider acquisition opportunities as they arise, but the board intends to maintain its cautious approach and to focus upon delivering organic growth, generating cash and maintaining a strong balance sheet.”

Nick Johnson and Steve Talbot of Mazars’ corporate finance team advised Proteus during a two year engagement which led to the sale.

Johnson said: “Proteus Software was established in 1987 as a business application software provider and has always been at the forefront of developing software applications that control supply chain business processes.

“We identified a natural fit with Sanderson Group and I am pleased that both parties have achieved a highly satisfactory result.”

Greg Emms, of Emms Gilmore Liberson provided legal advice. Sanderson was advised by Schofield Sweeney.