Xpediator has agreed to acquire freight forwarder and courier Regional Express for an initial payment of £1.2m.
An additional sum of around £130,000 will be paid on completion to reflect the target's working capital position, while up to £700,000 in cash is payable contingent on future trading performance.
Regional Express generated revenue of £6.0m, operating profit of £249,000 and profit after tax of £198,000 during the year ended 31 March 2017, Xpediator said.
"Regional Express is an exciting profitable niche operator and one which will fit well into the Xpediator Group, adding significantly to our existing air and sea freight operations, two areas where we have been looking to expand our presence," Xpediator chief executive Stephen Blyth said.
At 9:26am: (LON:XPD) Xpediator Plc Ord 5p share price was +1.88p at 34.5p