(Sharecast News) - Software provider Eleco has acquired the Vertical Digital group of companies in a deal worth as much as €1.55m.
Eleco will purchase Vertical Digital and Sons of Coding for an initial consideration of €1.3m, financed from internal cash resources, with the agreement also including a cumulative potential deferred and contingent earn out of a maximum total of €250,000.
The AIM-listed group stated the acquisition would add critical capabilities to Eleco, including the ability to service and scale its customers by connecting systems and providing technical consulting, increasing its product breadth and focus on customer centricity.
Eleco added that the acquisition will also provide for elastic augmentation of its internal research and development capacity, which it said will "further improve product time to value".
Chief executive Jonathan Hunter said: "We are impressed with the calibre of customers that Vertical Digital have serviced and the experience and talent of our new colleagues.
"Vertical Digital expands Eleco's capabilities and increases the opportunities available to the Group and we look forward to the future with confidence."
As of 1010 BST, Eleco shares were down 0.92% at 95.12p.
Reporting by Iain Gilbert at Sharecast.com
Elecosoft (ELCO)