Black Country software firm boosted by £800,000 acquisition

BLACK Country based software firm Innovise is planning growth after acquiring a Wiltshire rival in a deal worth more than £800,000.

The AIM-quoted software solutions and IT services provider, based in Brierley Hill, has taken on the software division of Expolink Europe Ltd for a total consideration of £810,000.

Shares soared more than 11% in early trading following the announcement of the acquisition.

Based in Chippenham, Expolink Software was founded over 10 years ago
and competes with Innovise in the facilities management, transport and NHS
markets. The division has a portfolio of products led by its Maximiser solution
for quality monitoring and is a specialist in applications using mobile devices
for data collection.

Mike Taylor, chief executive of Innovise, said: “Expolink Software has been a highly respected and successful competitor for many years, with a large and loyal customer base, excellent products and a great team.

“I am delighted that we will be able to combine the products and talent within our businesses to better serve our joint customer base. I am confident the expanded business will enable us to generate sustainable long-term growth through continued innovation in our chosen niche markets.”

David Crook, chairman of Expolink Europe, said: “Our software division has grown steadily over the years but has reached a stage where more focus is required to fulfil its potential. I am delighted to see the business move forward under Innovise’s ownership and have every confidence in its future success.”

For the year to April 2010, Expolink’s software division reported sales of almost £900,000. Innovise will fund the acquisition through a £500,000 loan note and operational cash flow. The board of Innovise expect the acquisition to be at least earnings neutral in the current financial year and earnings enhancing thereafter.

Completion of the acquisition is expected to take place on or before November 10.

In addition to its software division, Expolink Europe Ltd has call centre and whistleblowing hotline businesses which are not part of this transaction.

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