Indigo now part of larger rival’s universe
BROMSGROVE-based Indigo Retail Holdings has been snapped up by Universe Group plc in a £1.65m deal.
Universe Group, a developer and supplier of payment and loyalty solutions to the UK retail fuel industry, may have to make further cash considerations for Indigo dependent on the achievement of certain revenue growth targets.
Indigo (trading through its wholly-owned operating subsidiary, Indigo Retail Technology Limited) is an independent and privately-owned developer and supplier of point of sale, back office and head office management systems, as well as an integrator of related payment and loyalty software.
It has particular expertise in providing its specialist systems and services to independent forecourt retailers and the non-fuel convenience store market, where Southampton-based Universe currently has a complementary presence.
Universe – which trades under the HTEC brand – suggests the acquisition will bring a number of direct and immediate benefits to the customers of both businesses. It is expected that the acquisition will be immediately earnings enhancing for Universe.
Indigo recorded turnover of £2.1m and EBITDA of £0.43m for the year ended 31 August 2012.
Universe’s CEO Stephen McLeod said: “Indigo’s and HTEC’s products, brands and market positions are highly complementary. Coupled with the energy and commitment of the new combined team we expect to offer and deliver attractive and compelling products and services to retailers in the convenience and independent market segments.
“We are pleased that the vendors of Indigo have chosen to take a significant proportion of the sale consideration in Universe shares and that they share our confidence in the prospects for the enlarged entity.
“Having achieved the turnaround and set clear strategic objectives, this acquisition is a natural next step for Universe. We continue to assess a range of other small acquisitions but will proceed with them only if they are as compelling as the acquisition announced today.”
