LONDON (Alliance News) - Castleton Technology PLC on Thursday said it acquired Deeplake Digital Ltd, which provides digital technology for landlord and tenant communication, for GBP1.8 million in cash.
The London-listed management software provider said the acquisition will bolster Castleton's existing suite and enable it to enhance its operations across its customer base.
Castleton said the acquisition will add annualised revenue of GBP800,000, of which 80% is recurring in nature, and normalised earnings before interest, taxes, depreciation, and amortization of GBP300,000 based on the year to the end of June 2018.
The company expects the acquisition to be earnings accretive in the financial year to the end of March 2020.
"This strategic acquisition enables us to capitalise on the significant opportunities within the social housing market's ongoing market shift towards digitalisation, building on the capabilities that the group has already successfully developed," said Castleton Chief Executive Dean Dickinson.
"This acquisition provides additional cross-selling opportunities into Deeplake Digital's customer base, in line with the group's growth strategy," added Dickinson.
Castleton shares were trading 0.5% higher on Thursday at 95.01 pence each.