Software firm invests £15m in Scottish acquisition
SOFTWARE provider Proactis is set to snap up a bolt-on business for £15.5m.
Proactis has signed a conditional agreement to acquire Millstream Associates Limited, an Aberdeen-based firm.
Just over 9m shares will be sold to fund the acquisition, raising £12.5m, with an additional £6m revolving credit facility to fund the takeover.
£4.9m-turnover Millstream returned adjusted EBITDA (unaudited) of £2.0m for the year to 30 June. Established in 1989, the company provides eProcurement services to large buying organisations, specialising in the public sector.
Proactis has been looking at acquisitions to help grow the business, a strategy which has paid off thus far. In October the Wetherby-based business reported a 13% increase in revenue to £19.4m.
It spent £4.5m on eProcurement business Due North earlier this year and has committed to its M&A strategy as well as organic growth.
Rod Jones, chief executive of PROACTIS, said: “The acquisition of Millstream represents a significant step in our growth strategy, substantially increasing the scale of the Group.
“The acquisition broadens both the product offering and the customer base on the buy side of the procurement process whilst also bringing scale of operation on the strategically important supply side of the procurement process.
“Millstream is a clear complementary fit to the Group and provides some potential upside with cross-selling opportunities into both the PROACTIS and Millstream customer bases.”
A team from Walker Morris advised on the acquisition and share placing which included Richard Naish, Jo Stephenson and Christopher Blair from the corporate team with support from Michael Taylor, James Crellin and Antonia Hull from the banking team.
Richard Naish, partner at Walker Morris, said: “Walker Morris has been delighted to support Proactis on its acquisition of Millstream which represents an excellent fit with the Proactis portfolio. As a long standing client of the firm we hope that this latest acquisition will provide Proactis with a solid platform for future growth.”
