Vianet acquires Vendman Systems in £4.25m deal

Business insight and data company Vianet Group announced the acquisition of enterprise resource planning and unattended vending mobile software provider Vendman Systems on Wednesday, for a total consideration - including an earn out - of up to £4.25m, payable in cash.

The AIM-traded firm said Vendman - based in Hazel Grove, Cheshire - develops, manages, and supports integrated software and mobile applications for the unattended retailing industry.

Its solutions included stock control, pricing information, data management, account analysis and route planning, Vianet explained.

The board claimed Vendman was the UK market leader, providing management services for more than 200,000 machines in the UK and European unattended retail markets, with a track record of growth.

Unaudited accounts for the 12 months to 31 March recorded revenues of £1.8m, over 90% of which were recurring, and an operating profit of £0.27m with net assets of £0.28m.

The initial cash consideration payable for Vendman was £2m - subject to customary completion adjustments - on completion, with an earn-out element of up to £2.25m based on the achievement of EBIT targets in the first two years.

Vianet said the initial £2m of consideration was to be funded by a bank loan, with a current blended rate of 3%, adding that it envisaged that the earn-out would be funded from cash reserves.

“We are delighted to announce this significant strategic acquisition of a valued existing partner, and we look forward to accelerating business growth with the highly experienced and respected Vendman team,” said Vianet CEO Stewart Darling.

“I believe the combination of Vendman ERP and mobile software products with Vianet IOT connectivity, data analytics and contactless payment solutions creates an unparalleled portfolio with strong presence in the UK and Europe.

“This is positive news for both sets of customers as we continue to extend our capability, delivering increased value to the unattended retail sector, and in doing so accelerating our pan European growth plans. “