IMImobile, a cloud communications software and solutions provider, has agreed to acquire the trade and assets of the Sumotext Corporation, an established US based communications platform provider.
It said the consideration would be between $4.5m and $6m, depending on EBITDA performance of the acquired business during the first 12 months following the acquisition.
IMImobile said that management believed that this strategic acquisition provided a platform to launch the group's product offering to the enterprise market in the US.
It said that as a result of the acquisition the company expected to make significant investment in sales and marketing expenses for the US market during the current year and that the acquisition would be earnings enhancing in the year ending 31 March 2019.
IMImobile said trading for the six months ended 30 Sep was in line with directors' forecasts.
IMImobile said there would be significant investment of approximately £0.5m in sales and marketing activities in the second half of the current financial year to take advantage of market opportunities for cloud messaging product portfolio and current year revenue and gross profit were expected to be above market expectations.
At 8:15am: (LON:IMO) Imimobile Plc share price was +5p at 212.5p