Bury St Edmunds: Netcall acquires Serengeti Systems in £2.9m deal
PUBLISHED: 11:30 28 September 2012
SERENGETI Systems has been acquired by the Cambridge and Hertfordshire-based technology company Netcall plc in a deal valued at up to £2.9million.
Bury St Edmunds-based Serengeti provides document and contact management solutions to the public sector and has more than 40 clients including the University of Cambridge and the Forestry Commission.
Customer engagement software provider Netcall said it expected the acquisition to enhance earnings in the current year and was looking at other acquisition opportunities in the marketplace to accelerate consolidation.
It added that the transaction would offer opportunities to cross-sell Netcall and Serengeti’s product suites to a wider customer base and Serengeti would benefit from Netcall’s established sales and marketing platform.
Netcall, which has offices in Cambourne, Hemel Hempstead and Poole in Dorset, will pay an initial consideration of £2m in cash, subject to the completion of account adjustment. An additional performance related payment of £900,000 in shares and cash will be made, dependent on Serengeti achieving certain targets in 2012 and 2013.
In the year to November 30, Serengeti reported a pre-tax profit of £300,000 on revenues of £1.6m. Henrik Bang, chief executive of Netcall, said: “This earnings-enhancing acquisition is an important part of our growth strategy. Serengeti expands our product portfolio and increases the opportunity to drive further cross-selling across the group’s 700 strong customer base.”
Mark Clement, transaction advisory services director at Grant Thornton’s Cambridge office who helped advise Netcall’s board on the deal, said: “We were delighted to have advised on Netcall’s acquisition of Serengeti; the acquisition strengthens Netcall’s product and service offering and extends its reach to a wider market, which are important features of the Company’s growth strategy.
“This deal along with others we have advised on supports our view that M&A in the technology sector continues to be robust despite the challenging times.”