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Eckoh Strikes Deal Worth GBP8 Million To Buy Klick2Contact (ALLISS)

LONDON (Alliance News) - Payments company Eckoh PLC on Wednesday said it has struck a cash and ...

Alliance News 20 July, 2016 | 8:48AM
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LONDON (Alliance News) - Payments company Eckoh PLC on Wednesday said it has struck a cash and shares deal to acquire live web-help provider Klick2Contact EU Ltd.

Eckoh will pay an initial GBP2.35 million for Klick2Contact, split between GBP2.0 million in cash and GBP350,000 in Eckoh shares. An additional earn-out agreement worth up to GBP5.65 million will be paid in equal proportions cash and shares based on Klick2Contact meeting financial targets over the next two years. This would bring the total deal to GBP8.0 million.

Eckoh said the acquisition will boost its customer contact services operations, adding a range of customer engagement products to its offering. In 2015, Klick2Contact made earnings before interest, taxation, depreciation and amortisation of GBP219,000 on revenue of GBP881,000.

"We have a focused acquisition strategy, looking to find proven, profitable and growing businesses which bring us complementary technologies or reach. The acquisition of Klick2Connect is absolutely in line with these criteria, and we are extremely pleased to be adding its excellent product set, expertise and clients to Eckoh's portfolio," said Eckoh Chief Executive Nik Philpot.

"There is growing demand for a truly omni-channel customer contact offering, ideally delivered by a single supplier, and by combining K2C into Eckoh's proposition we are well placed to help satisfy this demand. We are excited about the opportunities to cross-sell the K2C products into our existing clients and to use the combined offering to assist us in identifying and securing new clients," Philpot added.

Shares in Eckoh were down 0.1% to 51.95 pence Wednesday.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance

Copyright 2016 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Eckoh PLC 60.00 GBX -0.83 -

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