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Idox acquires Reading Room

By BFN News | 07:53 AM | Thursday 08 October, 2015


Idox has acquired the entire issued share capital of Reading Room Ltd for a maximum total consideration of approximately £5.6m, including costs, which will be paid using the company's existing debt facilities. The figure is subject to adjustment based on the working capital and indebtedness of Reading Room as at 8 October. Through the Acquisition of Reading Room, Idox will be acquiring the company's trading entities in London and Manchester. Idox will not be acquiring Reading Room's Asia Pacific subsidiaries. Reading Room, founded in 1996, is a digital consultancy business with a focus on delivering websites and digital services that enable its customers to make critical shifts into digital business and client engagement. It has an international reputation for its award winning and innovative approaches to strategic consultancy, design, and technical delivery. The scquisition is expected to support and accelerate the development of the new online platforms already being developed by the Group, including the Local Government iApply initiative, and will also support ongoing improvement in user-experience within the Group's existing product suites. The Reading Room business will be fully integrated into the Idox business in the medium term and the Company expects there to be synergies resulting in cost savings across both businesses. For its financial year ended 31 March 2015, Reading Room reported, for the businesses being acquired, as yet unaudited revenue of approximately £9.8 million, with EBITDA of approximately £0.3 million and a loss before tax of approximately £0.1m. As at 31 March 2015 net assets were £1.4m. Story provided by StockMarketWire.com

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