Sanderson announces acquisition – purchase of niche ecommerce business for up to £645k in cash
Sanderson Group plc ('Sanderson' or 'The Group'), the software and IT services business specialising in multi-channel retail and manufacturing markets in the UK and Ireland, announces that on 12 August 2013, it completed the acquisition of Catan Marketing Limited ('Catan') for a maximum consideration of £644,660. The consideration, payable in cash, comprises an initial payment of £500,000 on completion with an additional amount of £49,660 due October 2013. A further payment of £95,000 is dependent on certain performance criteria being met by the end of August 2014.
Catan, based in Rugby, provides ecommerce solutions under the 'PRIAM' trading name to over 30 multi-channel retailers. For the year ended 31 August 2012, Catan achieved a profit before tax of £27,000 (2011: £69,000) on revenue of £895,000 (2011: £1,160,000). At the date of acquisition, Catan had net assets of approximately £50,000.
Sanderson is continuing to trade well in the second half of the financial year ending 30 September 2013 and management expects trading results to be in line with market forecasts. There are some early signs of improving general economic conditions and this should assist future organic growth.
Commenting on the acquisition, Christopher Winn, Chairman, said:
"We are delighted to welcome the PRIAM team into the Sanderson Group and over the next few months, the business will be fully integrated into our multi-channel retail division. Although relatively small in size, this is very much a complementary acquisition in terms of its products and customers, and augments the Group's existing multi-channel retail business. We are actively considering a number of further acquisition opportunities, especially in the multi-channel retail market, but will continue to adopt a cautious approach, remaining focused on organic growth, cash generation and maintaining a strong balance sheet".