Proxama completes acquisition of Aconite

5th Dec 2014 08:49

Proxama has completed its acquisition of Aconite, a card issuance and transaction processing software business.The group will satisfy the £2.06m consideration through the issuance of 68.67m shares at 3p apiece, together with a further deferred payment of up to £1.75m to management.Aconite has a net asset value of £1.6m and in the year ended 31 March generated revenues of approximately £1.75m, a gross profit of approximately £1.5m, but an EBITDA loss of approximately £0.8m.The firm has existing customer relationships with global financial card issuers and processors, where its software is integrated into the core operational processes for issuing and managing millions of cards.It has existing contracted revenues of approximately £7.3m for the next five years.The business is expected to be cash generative from January 2015, with a strong sales pipeline potentially worth £17.5m over the next five years.