Software Circle plc (AIM:SFT) acquired Arc Technology Limited for £2.0 million on February 21, 2024. The total consideration of up to £2.0 million will be satisfied in cash and is structured on a debt-free/cash-free basis. The initial consideration paid at completion was £1.1 million, with a deferred consideration of £0.3 million to be paid on the first anniversary of completion. Up to a further £0.6m is payable contingent upon the achievement of certain targets relating to the future financial performance of ARC Technology Limited. The £1.1 million initial consideration was funded from existing Software Circle cash reserves. The Earn-out is dependent on ARC achieving certain annual recurring revenue targets and may be achieved in full or in part by exceeding those targets in any of the two years commencing February 21, 2024. Nader Bishay, Managing Director and 50% shareholder of ARC, will remain with the business, enteringinto a new employment contract, and will continue to lead the team of eight staff located in England. Founding shareholder Soraia Bishay will leave the business. The unaudited financial statements for ARC for the year ended July 31, 2023, reported revenue of £1.1 million, EBIT of £0.34 million, and closing net assets of £0.94 million. David Hart, Piers Shimwell, Stefano Aquilino and Joscelin Pinnington of Allenby Capital Limited acted as financial advisors for Software Circle plc.

Software Circle plc (AIM:SFT) completed the acquisition of Arc Technology Limited on February 21, 2024.