Castleton Technology plc acquires Opus Technology Group Limited
On 2 March 2015, Castleton (AIM: CTP) announced the acquisition of Opus Technology Group Limited the provider of software solutions to the social housing market.
Opus has performed strongly since Acquisition with 6 new customers having signed orders with a total order value of £0.5 million. In the year to 30 September 2015 Opus achieved £0.2 million of EBITDA, representing an increase of over 300% when compared to the previous 12 month period. The earn-out that was put in place at the time of the Acquisition has therefore been achieved and as a result, £0.4 million of convertible loan notes ("Loan Notes") have been issued to the vendors of Opus. Furthermore, the Company will pay £0.1 million in cash to the vendors; £0.05 million in January 2016 and £0.05 million in January 2017.
The Loan Notes can be redeemed in cash or converted into new ordinary shares of 2 pence each in the capital of Castleton ("Ordinary Shares") at 40 pence per Ordinary Share in various tranches; £0.15 million on 30 September 2016, £0.15 million on 30 September 2017 and £0.1 million on 30 September 2018. The new Ordinary Shares arising from conversion of the Loan Notes will be subject to a 12 month orderly market agreement.
About Castleton Technology plc
Castleton Technology plc is a leading supplier of complementary software and managed services to the public and not-for-profit sectors. The acquisitions of Montal, Documotive, Opus, Keylogic, Brixx and Impact Applications bring together an exceptional suite of solutions, providing the foundation for this platform. Castleton works in partnership with its customers and resellers to help drive efficiencies whilst improving controls and customer service. www.castletonplc.com