Acquisition of Cloud Amber
Idox plc (AIM: IDOX), a leading independent supplier of software & services, is pleased to announce that it has acquired the entire issued share capital of Cloud Amber Limited ("Cloud Amber"), a leading provider of solutions delivering integrated intelligence for the management and control of traffic and public transport networks, for a total consideration of £4.95 million (the "Acquisition").
Cloud Amber, based in Bletchley Park, Milton Keynes, has a product suite which is focused on strategic highway control, local transport network management, public transport information and fleet management systems. It currently services over 40 local authorities and transport operators in the UK, with an increasing geographic spread through partner sales in Australia and current partnership opportunities in Malaysia.
Idox already provides solutions in support of highways planning and the acquisition of Cloud Amber supports Idox's existing offering in the management and operation of the highway infrastructure. The directors of Idox believe that Cloud Amber will afford Idox the ability to provide a more comprehensive solution to new and existing customers of the Group, extending the product suite that is transferable into international markets.
Cloud Amber reported revenue of approximately £2.4m, with EBITDA of approximately £0.6m and a profit before tax of £0.5m for its financial year ended 30 November 2014. The Acquisition will be funded from Idox's cash and existing debt facilities and the business is expected to continue to grow and make an increased contribution in the Group's financial year ending 31 October 2016 and beyond. The initial consideration payable is £3.75m with the balance of £1.2m subject to the future financial performance of Cloud Amber.
After an initial transition period, Cloud Amber will be merged with the Group's Public Sector Service Division (PSS). The addition of Cloud Amber to PSS is expected to extend the division's existing geographical reach, product range, functional capability and customer base.
Richard Kellett-Clarke, CEO of Idox, commented:
"The acquisition of Cloud Amber is an extension of our strategy of expanding into complementary areas where we can leverage on our domain knowledge to provide value adding solutions".