Business
Acquisition of Govtech Holdings Limited
Acquisition of Govtech Holdings Limited.
About this update from Netcall Plc
[{"type":"text","content":"\n\n7 August 2024\n \nNETCALL PLC\n(\"Netcall\", the \"Company\" or the \"Group\")\n \nAcquisition of Govtech Holdings Limited\n \nExtending Local Government footprint and enhancing Liberty portfolio with innovative digital solutions\n \nNetcall plc (AIM: NET), a leading provider of intelligent automation and customer engagement software, is pleased to announce the acquisition of Govtech Holdings Limited(1), a digital process automation company (the \"Acquisition\").\n \nHighlights:\n\n\n\n\n· \n\n\nComplementary offering to Netcall's existing suite of Liberty solutions, expanding the portfolio and increasing the Group's customer base within Local Government\n\n\n\n\n· \n\n\nExpected to be immediately earnings enhancing, with Govtech operating a compatible cloud recurring revenue model\n\n\n\n\n· \n\n\nSubstantial cross-selling potential across the portfolio\n\n\n\n\n· \n\n\nInitial cash consideration of £9.6 million, including £1.5 million relating to cash retained by Govtech, with an additional earnout, resulting in a maximum consideration of up to £13.0 million\n\n\n\n\n \nAbout Govtech\n \nGovtech (www.govtech.co.uk) is a technology company specialising in digital process automation, with a strong focus on local government revenues and benefits processes. Its platform handles approximately 30 million transactions annually, achieving up to 80% automation for its customers. This high level of automation results in significant productivity savings, with up to a 50% increase in efficiency for revenues and benefits teams, leading to an improved citizen experience and faster service delivery.\n \nHeadquartered in Cirencester, Gloucestershire, Govtech serves around 50 local authorities including Leeds City Council, The City of Edinburgh Council and Bristol City Council. All 39 employees, including the founders, will remain with Netcall and continue to be based in Cirencester. \n \nFor the financial year ended 31 March 2024, Govtech reported a 17% increase in revenue to £3.5 million (2023: £3.0 million), adjusted EBITDA(2) of £0.79m (2023: £0.65m), and a profit before tax of £0.73 million (2023: £0.59 million). Gross assets as of 31 March 2024 were £3.1 million (2023: £...