Shares in Oxford Metrics PLC rose on Monday after striking a deal to sell its infrastructure asset management unit Yotta, to construction-focused software provider Causeway Technologies Ltd for £52.0 million in cash.

Shares in the Oxford-based software provider were 27% higher at 100.00 pence on Monday morning in London.

Yotta currently serves around 200 customers, and provides software to assist in the management of physical assets and services, including highways, street lighting and waste management.

Oxford Metrics said the sale of Yotta will not only deliver near-term value for the group’s shareholders, but also bring increased clarity to its five-year growth plan, which is targeted at growing revenue by 2.5 times and a returning to adjusted pretax profit margins of 15%.

Oxford Metrics said its plan can now be undertaken with one core technology stack, giving greater operational leverage.

Proceeds from the sale will go towards the acceleration of the group’s acquisition drive and planned organic investments, as well as broaden Vicon’s product bench and extend Oxford’s sensing and analysis capabilities.

‘Today’s sale of Yotta is an enabler of growth on multiple fronts. First, it combines our excellent Yotta team and technology with a platform that can unlock additional growth across Yotta’s existing market - and in other adjacencies,’ said Chief Executive Officer Nick Bolton.

‘I am proud of the Yotta team’s many achievements and I am confident that, in combining with Causeway, many more achievements lie ahead. For Oxford Metrics, today’s sale not only realises the investment we have made in Yotta at an attractive multiple, but it also brings even greater clarity to our go-forward growth path.’

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