Business
Acquisition of Link Maker Systems Limited
Acquisition of Link Maker Systems Limited.
About this update from Software Circle Plc
[{"type":"text","content":"\n\nPrior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the UK Market Abuse Regulation. With the publication of this announcement, this information is now considered to be in the public domain.\n \n26 July 2024\nSoftware Circle plc\n(\"Software Circle\", the \"Company\" or the \"Group\")\n \nAcquisition of Link Maker Systems Limited (\"Link Maker\")\n \nSoftware Circle plc (AIM: SFT) is pleased to announce that it has acquired the entire issued share capital of Link Maker Systems Limited. Link Maker's adoption platform joins-up children's social care across the UK to increase placement choice for children, and to improve use of data and collaboration between local authorities and adoption agencies.\n \nThe total consideration of £4.5m will be satisfied in cash and is structured on a debt free/cash free basis. The acquisition is expected to be cash flow generative and earnings enhancing in the first year after acquisition.\n \nThe initial consideration paid at completion was £3.0m. Up to a further £1.5m is payable contingent upon the achievement of certain targets relating to the future financial performance of Link Maker (the \"Contingent Consideration\"). Further information on the terms of the acquisition is set out below.\n \nAbout Link Maker\n \nLink Maker's platform increases placement choice for children awaiting adoption, creating a UK-wide pool of available adopters, and improving the use of data and collaboration between all adoption agencies nationwide, covering England, Scotland, and Wales.\n \nThe business has been in operation for over a decade and provides mission critical services for adoption agencies and local authorities. Over 95% of revenues arise from annual recurring fees from its clients.\n \nThe three shareholders, Craig Rigby-Wilson (Co-CEO), Andy Leary-May (Co-CEO) and Linda Hill (Operations Director) have entered into new employment contracts and will continue to lead the team of six staff.\n \nThe unaudited financial statements for Link Maker for the year ended 31 March 2024 reported revenue of £1.56m, EBIT of £0.89m and closing net assets of £0.46m. After adjustments our valuation is based upon a lower expected EBIT of approximately £0.7m.\n \nTerms...