Crimsonwing plc announced on 11 June that it entered into a Share Purchase Agreement for the acquisition of the total issued share capital of VDA Informatiebeheersing BV, a company based in The Netherlands, for a total consideration of €1.9 million. This acquisition is in line with Crimsonwing’s stated strategy to bring additional and larger companies into the Crimsonwing Group. The VDA acquisition will be funded through a combination of cash and debt financing of €1.5 million, which will allow Crimsonwing to continue to pursue its strategy with further acquisitions in the future.
VDA is a well-established IT professional services business specialising in the Broadcasting, Media Agencies, Publishing and Cable/ISP sectors. It has been in operation for the past 16 years and had annual revenues of €3.4 million. As part of Crimsonwing, VDA will be able to exploit the synergistic benefits working with Crimsonwing’s Malta Solution Centre and this will result in immediate operational cost savings.
The acquisition brings over 60 new clients to Crimsonwing, together with associated product licence and intellectual property. VDA is a Microsoft Dynamics partner (a key solution also offered by Crimsonwing) and additionally the Media and Publishing verticals make an excellent strategic fit with Crimsonwing UK’s business.
Crimsonwing reported that the VDA acquisition will lift the company’s sales in euro from 25% to 45% of overall revenues. This will therefore help to significantly reduce the impact of exchange rate fluctuations between the UK Sterling and the euro.
Further details of this acquisition are expected to be provided during a stockbrokers’ meeting scheduled for Monday 16 June.