CyBit makes its third acquisition in a year
Telematics provider, CybIT has added another feather to its cap with the acquisition of online telematics service provider, Amatics for a £4m consideration, with a further earnings-dependent £2m to follow.
The Godmanchester-based firm, which posted impressive, acquisition-fed profits in June, said that it would satisfy the consideration with £3.5m in cash and the issue of 962k shares, with an additional payment of up to £2m dependent on performance targets between the completion date and March 2009. Amatics generated revenues of £3.3m during 2006, CybIT said, and would contribute a future revenue stream of around £1.7m from existing customer contracts. Amatics is one of the UK's leading telematics service providers to the utility services sector, CybIT said, with around 25 long-term customers with 4k installed units. “This is now our third sizeable acquisition in little over a year,” said CEO Richard Horsman. “Cybit has now reached a level of critical mass where the consolidation of similar businesses can make a significant contribution to both top line and bottom line growth.” Shares in the company have seen a six per cent rise in value, growing 3p to 51.5p.