AIM-listed Castleton Technology acquires Welsh software business Deeplake
AIM-listed software business Castleton Technology plc has acquired social housing tech company Deeplake Digital.
The deal, completed for £1.8m, will add dozens of new clients to Castleton’s books and boost the firm’s annual revenues by around £800k.
Deeplake Digital, based across Cardiff and Cambridge, provides digital technology for the social housing sector. It enables landlord and tenant communication via SMS, email and social media through its own software, Deeplake Communications Manager.
Castleton provides software and managed services to the public and not-for-profit sectors.
The firm expects the deal to be earnings enhancing in the next full financial year, the period ending March 31 2020.
Dean Dickinson, CEO of Castleton Technology, said: “This strategic acquisition enables us to capitalise on the significant opportunities within the social housing market’s ongoing market shift towards digitalisation, building on the capabilities that the group has already successfully developed.
“Deeplake Digital adds scale, customers, skills, market knowledge and specific digital communication intellectual property and has a great reputation for delivering a quality product and service, evidenced by its high customer retention levels over the past 10 years.”
He added: “This acquisition provides additional cross-selling opportunities into Deeplake Digital’s customer base, in line with the group’s growth strategy.”