Teesside IoT specialist snaps up Cheshire software provider in £4.25m deal
Teesside-based Vianet Group plc, a provider of actionable data and business insight through devices connected to its Internet of Things platform, has acquired Cheshire-based Vendman Systems Ltd in a deal worth up to £4.25m.
Vendman, which is based in Hazel Grove, develops, manages, and supports integrated software and mobile applications for the unattended retailing industry.
Unaudited accounts for the 12 months ended 31 March 2017 recorded revenues of £1.8m for the firm, over 90% of which were recurring, and an operating profit of £0.27m with net assets of £0.28m.
The initial cash consideration payable for Vendman is £2m (subject to customary completion adjustments), on completion, with an earn-out element of up to £2.25m based on performance targets.
Vendman is reportedly a highly complementary fit with Vianet’s existing business and has successfully partnered with Vianet’s Smart Machines division, which consists of IOT connectivity and contactless payment solutions to Vendman customers.
Stewart Darling, CEO of Vianet Group plc, spoke of his delight in securing the strategic acquisition.
He revealed: “I believe the combination of Vendman ERP and mobile software products with Vianet IOT connectivity, data analytics and contactless payment solutions creates an unparalleled portfolio with strong presence in the UK and Europe.
“This is positive news for both sets of customers as we continue to extend our capability, delivering increased value to the unattended retail sector, and in doing so accelerating our pan European growth plans.”
James Dickson, Chairman of Vianet Group plc, added: “This is an important acquisition which greatly advances our strategy for growth and is a hugely complementary fit for our business on several fronts and takes it to the next level.
“The fact that Vendman has chosen to deal with Vianet is a strong endorsement of our capability, vision and strategy for the Smart Machines division.
“As businesses increasingly seek and rely on actionable data, business intelligence and insights, Vianet’s expansion of proven IOT capability shows that we are well placed to deliver compelling results for our customers and accelerate our own growth in what are rapidly evolving markets.”