LONDON (Alliance News) - Proactis Holdings PLC Monday said it has acquired Intelligent Capture Ltd as it looks to support the launch of its Activate solution.
Proactis, a spend-control software provider, said it will pay GBP1.55 million in cash and shares for Intelligent Capture, a document scanning and optical character recognition services provider. The net consideration is GBP1.40 million, it said, as Intelligent Capture comes with GBP0.15 million in cash on its books.
The deal comprises a GBP1.25 million cash payment upon completion, along with 511,334 new Proactis shares worth GBP0.3 million.
Proactis said the cash portion of the transaction will be supported by a new four-year term loan of GBP1.0 million from HSBC Bank PLC, part of HSBC Holdings PLC. The loan is priced at 2.65 percentage points over the London interbank offer rate.
Proactis said annual recurring revenue as part of the deal is set to be in excess of GBP1.25 million, with total revenues of GBP1.5 million.
In a statement, Proactis said the 'bureau type' invoice scanning and translation services offered by Intelligent Capture would support the Activate solution, along with the commercial and operational roll out of the product.
"Intelligent Capture is a crucial strategic acquisition for Proactis, accelerating and de-risking the execution of Activate," said Proactis Chief Executive Rod Jones.
"We have worked successfully with Intelligent Capture for some time, partnering in several key accounts. Its expertise in this area is exceptional and we look forward to working with the team to drive Proactis' strategy forward, and to deliver returns for shareholders."
Proactis shares were down 1.75% to 55.021 pence on Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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