Coretx Holdings buys IT support and services provider for £5.4m

Technology company Coretx Holdings has bought 365 ITMS, an IT support and services provider, for £5.4m.

The £5.4m paid, comprises of £1.6m in cash financed from the company’s existing bank facility, £3m worth in new shares at a price of 30.53p each, assumption of £600,000 cash balances, and a £1.4m debt balance.

The acquisition, which is expected to be earnings enhancing in the first full year of trading, ha sbabses in Riseley and Poole, is anticipated to complement and expand the company's products and services portfolio, particularly voice, unified communications and cloud services.

Coretx also believes that it will provide cross and up-sell opportunities

In the 10 months to 31 January, 365IT generated revenue of £12.7m, of which 45% is recurring and earnings before interest, tax, depreciation and amortisation (EBITDA) of £500,000.

Coretx non-executive chairman Jonathan Watts said: "365IT has a very strong IT services pedigree, with excellent voice, unified communications and cloud capability which we believe will accelerate Coretx's presence in these high growth areas and enable us to provide our customers with a broader and more comprehensive offering."

Shares in Coretx were up 1.21% to 31.88p at 0847 BST.