TextLocal sold in £13m deal

TWO Chester entrepreneurs, Darren Daws and Alistair Shortland, have sold their mobile messaging firm TextLocal in a deal worth £13.1m.

TextLocal, launched nine years ago, sends marketing messages and other information to mobile phones for small businesses.

It has been acquired by Buckinghamshire IMImobile which is paying £10m in cash, plus £1m in shares and a deferred consideration of £2.1m.

IMI said the deal would give it a broader client base and cross-selling opportunities.

It added: “A key attraction for IMI of the acquisition was the TextLocal team, who have successfully developed and sold its market leading platform with a track record of delivering revenues profits and cash flow.

TextLocal has 30 staff in Chester and Malvern and made a pre-tax profit of £1m on sales of £7m in the year to the end of November.

IMImobile said it expected the acquisition to enhance group earnings from the second half of the year to March.

TextLocal was advised by corporate finance firm GP Bullhound which has an office in Manchester. IMImobile was advised by SPARK Advisory Partners.