iSentric Limited (ASX:ICU) has signed a binding agreement to acquire DataMorph Services, a Malaysian company that develops enterprise analytics solutions targeted towards small and medium enterprises.
The acquisition will strengthen iSentric’s core service offerings in both B2B and B2C segments and facilitate expansion into growth areas of the mobile commerce sector.
Acquisition price is $46,883, funded from cash reserves; and DataMorph management will transfer to employees of iSentric, operating under a new ‘Analytics’ division.
The acquisition will provide earnings diversification into data analytics, and will be EPS accretive.
DataMorph offers a cloud based middleware application for the storage, retrieval and analysis of data designed to work with a variety of data structures, and a proprietary engine capable of mining and cleaning data stored in column oriented data stores.
DataMorph also produces cloud based application plug-ins that perform functions such as messaging and digital marketing.
These plug-ins are natively compatible with the analytics middleware and engine, and are targeted at SMEs that do not currently have these capabilities.
ICU is also acquiring Arte Mobile Technology which has exclusive distribution agreements with PT Lingua Asiatic and PT Alpha Media Communications for the distribution of mobile content in Indonesia.
Arte Mobile is expected to generate NPAT for the financial year ended 2015 in excess of $A2.2 million; this proposed acquisition will be based on a multiple of the NPAT for FY2015, with a cap on the consideration of $18 million.
