Artilium to buy Belgian web development agency
Telecommunications software provider Artilium is to buy Wbase CV, a Belgian web development agency, for up to €410,000.
The acquisition will pave entry into the Belgian market and help develop Artilium’s online presence, as well as provide client cross-selling and upselling opportunities.
Artilium will pay €110,000, of which €20,000 will be satisfied by the issue of 254,776 new shares of 5p each at a price of 6.75p. The remaining €90,000 will be paid in cash settle outstanding debt owed to Wbase.
The new shares will be admitted to trade on AIM on 18 April, and following admission the company will have 311.27m shares in issue.
The company will pay up to €300,000 in shares depending on whether Wbase reaches its revenue target for the 12 months following completion.
For the year ended 30 June 2016, Wbase generated revenue of €165,374, earnings before interest, tax, depreciation and amortisation (EBITDA) of €40,860 and its net assets were worth €47,317.
Artilium chief executive Bart Weijermars said: "This acquisition will provide the skills and experience needed in the front-end development of our products and services as well as providing scale and knowledge to enhance our own online presence.
“We are completely committed to ensuring a smooth transition for all involved. The acquisition of Wbase will also provide cross-selling opportunities underpinning our strategy to grow significantly over the coming years."
Shares in Artilium were up 1.02% to 6.95p at 1009 BST.