Panoply acquires Brisol-based Nudge Digital

Technology-enabled services group Panoply has acquired Nudge Digital, a digital services agency that delivers strategy-led services to the pharmaceutical industry, health sector, and local authorities.

Panoply said on Thursday that it will pay £5.0m for the acquisition, with £1.75m being satisfied in cash and £3.25m being covered by way of the issue of new ordinary shares. The cash portion of the consideration will be funded through the group's own cash reserves.

The AIM-listed group stated the acquisition of the Bristol-based business was "strategically important" to the group and would strengthen its overall position in healthcare and, importantly, provide it with an entry into the pharmaceutical industry.

Panoply also highlighted that the acquisition was "profitable and immediately earnings enhancing" for the group, with Nudge achieving "significant revenue growth" of 151% over the last two years. Nudge will also enter the group with a booked backlog of £2.5m for the 2022 trading year.

Chief executive Neal Gandhi said: "Pulling together Nudge's experience in private healthcare and pharmaceuticals with the group's existing experience across the NHS and local authority adult social care gives us a strong base to become a leader in the healthcare sector in the UK."

As of 1050 BST, Panoply shares were up 7.07% at 265.0p.