Netcall Acquires MatsSoft Through Cash And Share Issue (ALLISS)

LONDON (Alliance News) - Customer engagement software firm Netcall PLC said on Monday it has ...

Alliance News 7 August, 2017 | 10:37AM
Email Form

LONDON (Alliance News) - Customer engagement software firm Netcall PLC said on Monday it has acquired cloud-based software provider MatsSoft Ltd, as the company expects to report trading in 2017 to be in line with market expectations.

Netcall will initially pay GBP11.1 million in cash and issue 3.5 million shares at a price of 5.0 pence each, with the potential of a further payment of GBP2.3 million and issue of up to 9.5 million shares, depending on the achievement of performance targets over various periods following the acquisition leading to December 2019.

Shares in Netcall were down 2.6% at 65.00 pence on Monday.

Netcall is funding the acquisition through its existing cash resources and a GBP7.0 million loan note from the Business Growth Fund, a GBP2.50 billion UK firm focused on small and medium businesses.

MatsSoft's low-code software platform enables rapid delivery of enterprise-grade business applications with a minimum of hard coding and upfront investments. This addresses the growing gap between organisations' demand for business applications and the resources available to deliver them.

The acquisition is intended to complement Netcall's Liberty platform, enhancing its ability to drive organisations' digital programmes more effectively, as well as accelerate Netcall's migration to the cloud platform.

"We are today taking a big step forward in delivering on our strategy of helping organisations improve customer engagement and are thrilled to have MatsSoft as a part of Netcall. We see a great opportunity offering the MatsSoft capabilities to our customers across the public and private sectors as well as expanding into new markets. The acquisition will enhance our ability to deliver a unique and powerful set of capabilities and applications that will help our customers accelerate the transformation of their customer engagement," said Chief Executive Officer Henrik Bang.

In addition, Netcall said its trading in the year ended June 30 was robust with an increasing share of the sales mix coming from software as a service-based contracts, in line with the company's transition to cloud.

With this mind, Netcall expects revenue for the year to be GBP16.2 million, a slight dip from GBP16.6 million the year before, while adjusted earnings before interest, tax, depreciation and amortisation will remain flat at GBP4.5 million. Also, following the acquisition, Netcall will scrap its enhanced dividends programme and will continue to pay out normal dividends.

Netcall now has 144.6 million shares issued overall.

By Dayo Laniyan; dayolaniyan@alliancenews.com

Copyright 2017 Alliance News Limited. All Rights Reserved.

Email Form
Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Netcall PLC 45.00 GBX -1.10 -
About Author Alliance News

Alliance News provides Morningstar with continuously updating coverage of news affecting listed companies.