The Panoply buys GreenShoot Labs for up to £7.35m

(Sharecast News) - Technology services company, The Panoply, has announced the acquisition of GreenShoot Labs - a provider of enterprise digital solutions using applied Artificial Intelligence and conversational interfaces - for up to £7.35m. The Panoply said GreenShoot Labs further progresses its aim to build regional clusters which provide a full suite of digital transformation services.It said the deal is in line with its strategy to back start-ups with strong management and strong potential for growth. The acquisition terms include no initial consideration and additional consideration only payable if GreenShoot Labs achieves positive EBITDA during the earn-out period.In the period following completion, a de minimis cash amount will be payable to the sellers of GreenShoot Labs equivalent to the value of the current net assets of GreenShoot Labs acquired at completion.In order to achieve the theoretical maximum for the total consideration payable, GreenShoot Labs would need to generate in excess of £1m EBITDA within the earn-out period. The Panoply said there can of course be no guarantee that GreenShoot Labs will be able to grow its business to this level within the required timeframe.Chief executive officer Neal Gandhi said: "We are delighted to be making our third acquisition since our IPO of GreenShoot Labs, a leader in applied AI and conversational interfaces. Over a short period of time the team there have proven themselves a player to be reckoned with in their field, implementing projects for several blue-chip brands and garnering national acclaim with their AI football coach."The acquisition of GreenShoot Labs enables The Panoply to solve another important element of the digital transformation puzzle and we are excited to see the company's growth accelerate as part of the group."At 1505 GMT, the shares were down 5% to 95p.