Veritape sold in £10m deal
VERITAPE, a Manchester firm which specialises in phone call recording software for call centres, has been bought in a deal worth £10.6m.
The business, set up in 1998, has been sold by James Heath, Cameron Ross and a number of small shareholders to Hemel Hempstead-based stock market firm Eckoh.
In a statement it said it had paid an initital consideration of £6.3m and there will be a further £4.3m in cash and shares depending on the company’s performance.
In the year to August 31 Veritape generated unaudited revenues of £766,000 and a profit before tax of £230,000. Its software is compliant with payment card industry data security standards (PCI DSS).
Eckoh said the transaction will be “immediately earnings enhancing”. In the nine months since August, Veritape has “experienced exceptional growth and has already doubled revenue from the previous year”, said Eckoh.
Chief executive Nik Philpot, said: “We are delighted to be announcing the acquisition of Veritape which consolidates our market leading position in the UK for PCI DSS compliant payment products and strengthens our proposition in overseas markets.
“The market for PCI DSS compliant payment solutions continues to underpin our growth projections and with the regulatory requirements becoming more stringent, the ability to offer a broader product offering will enable us to satisfy more of this growing demand.”
Veritape has its headquarters in Middleton and another office in St Albans.
