(Alliance News) - Aukett Swanke Group PLC on Monday said it has acquired smart workspace systems distributor Anders & Kern UK Ltd for GBP515,057.
The London-based architectural and interior design services provider said it purchased the company from Easter Road Holdings Ltd, a subsidiary of SmartSpace Software PLC, on Friday.
The firm added that the consideration figure is subject to a working capital adjustment limited to GBP45,000, making the maximum consideration GBP560,000.
Aukett Swanke said the acquisition will enable A&K to expand as a business by taking advantage of synergies created between the businesses. The firm said the acquisition is the first of a number of opportunities to broaden its expertise in the operation of smart buildings.
Chair Cliver Carver said: "We are pleased to be completing on a second acquisition to accelerate our smart buildings strategy following the Torpedo Factory (TFG) acquisition in March. The A&K business has been known to TFG for some time, and the Board believes that TFG's systems and resources will enable A&K to scale faster."
In its own announcement, SmartSpace Software said it would receive GBP1.38 million from the sale, with GBP860,000 set to be received from the sale of its freehold building in Mildenhall to Oaktree Associated Holdings Ltd.
SmartSpace said it will use the funds from the sale to strengthen its working capital.
Following the sale, the firm said it is now solely focused on software-as-a-service.
Chief Executive Frank Beechinor said: "We are delighted to have reached an agreement with Aukett Swanke, an AIM listed business. A&K will be a cornerstone in [Aukett's] strategy to build smart workplace technology solution business in the UK. SMRT will continue to work closely with A&K as they will continue to offer SMRT software products to their UK customers.
"With hardware no longer part of the Group revenues we will generate gross margins more in keeping with those of a high growth SaaS business, and management will apply their energies solely on growing the software business. The funds from this transaction will be used to strengthen Group's balance sheet allowing us to find opportunities to accelerate growth of our software business."
Aukett Swanke shares were untraded at 1.76 pence each on Monday afternoon in London, while SmartSpace shares rose 2.0% to 39.26p each.
By Harvey Dorset, Alliance News reporter
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Aukett Swanke (AUK)
Smartspace (SMRT)