Idox acquires Cloud Amber for £4.95m
Software and services supplier Idox has acquired Cloud Amber, a provider of solutions for the management of road traffic and public transport, for £4.95m.
With Cloud Amber serving 40 local authorities and transport operations in the UK, the acquisition will provide a new string to Idox's bow in the management and operation of the highway infrastructure.
Cloud Amber posted full-year revenues of £2.4m and pre-tax profit of £0.5m in 2014.
The initial consideration is £3.75m with the remaining £1.2m subject to the company's performance.
The company will merge with Idox's public sector service division (PSS).
Chief executive Richard Kellett-Clarke said the acquisition was an extension of the group's strategy of "expanding into complementary areas where we can leverage on our domain knowledge to provide value adding solutions".
FinnCap analysts maintained their 'hold' recommendation and 140p target price but said: "It is encouraging to see Idox returning to acquisition to support organic growth in the core PSS division, and we look forward to further developments in calendar 2H15."