Proactis completes £15.5m Millstream acquisition

Proactis Holdings, a spend control software provider, has completed the acquisition of Millstream Associates, a provider of e-procurement systems and services to the public sector, for about £15.5m.

The acquisition was funded through a share placing of 9.2m shares to raise about £12.5m and a revolving credit facility of £6m.

Proactis chief executive Rod Jones said Millstream is complementary the company, and that the acquisition marks the next step in its growth strategy.

“We are excited by the potential upside with cross-selling opportunities into both the Proactis and Millstream customer bases. This acquisition enhances our scale and broadens our capabilities and we look forward to integrating Millstream into our business."

Millstream reported revenues of £4.9m and adjusted earnings, before, interest, tax, depreciation and amortisation (EBITDA) of £2m for the year ended 30 June.

Shares in Proactis were up 0.01% to 146.01p at 0928 GMT.