Access Intelligence is poised to acquire ResponseSource, a move signifying a major expansion in the communications software sector.
This acquisition is structured in a £5.5 million deal, combining cash and shares, reflecting a forward-thinking strategy for growth.
Software-as-a-Service (SaaS) business ResponseSource is on the cusp of being acquired by an AIM-listed technology group in a significant multi-million pound transaction. The deal, totalling £5.5 million, involves £5 million in cash with the remaining balance in company shares, marking a strategic move for Access Intelligence.
Established by former journalist Daryl Willcox in 1997, ResponseSource has gained recognition for its online intelligence offerings tailored for PR, marketing, and journalism professionals globally. The company reported a pre-tax profit of £300,000 against revenues of £3.1 million for the year ending December 31, 2017.
Access Intelligence, renowned for its corporate communications and reputation management software, has initiated this acquisition to bolster its market position. Their flagship product, the Vuelio communications management platform, already supports over 1,500 clients in various sectors, offering a robust customer base.
This acquisition aligns with Access Intelligence’s ambition to augment its portfolio, leveraging ResponseSource’s complementary platform services. According to CEO Joanna Arnold, the integration is seen as an opportunity to solidify their market-leading status and stimulate growth through industry innovation.
To fund this acquisition, Access Intelligence has proposed raising £6.8 million through a share placing. This proposal is designed to support the financial commitments of the purchase, ensuring liquidity and financial stability post-acquisition.
Shareholders are expected to convene at an extraordinary general meeting on November 1, 2018, to assess and approve this funding strategy. This move is crucial to gain the necessary backing and proceed with the acquisition process without financial hindrance.
The acquisition of ResponseSource by Access Intelligence illustrates a proactive approach towards consolidating market share within the communications software industry. This move is anticipated to create synergies that benefit clients by enhancing service offerings.
Looking forward, the combined strengths of Access Intelligence and ResponseSource are predicted to drive innovation, potentially disrupting traditional methodologies in communications and reputation management. Their collaboration is expected to bring forward-thinking solutions to a broader client base.
Joanna Arnold, CEO of Access Intelligence, emphasized that this acquisition is not only about expanding market reach but also about creating a platform for innovation. Her vision centres around producing comprehensive solutions that cater to evolving client needs.
Her statements reflect a commitment to leveraging both companies’ strengths to foster a dynamic environment that advocates for technological advancement. The focus remains on long-term growth and establishing new industry standards through collaborative efforts.
The upcoming extraordinary general meeting holds significant importance for Access Intelligence’s future. Shareholder approval is paramount to execute the acquisition smoothly and to implement the strategic plans laid out by the company leadership.
The acquisition of ResponseSource by Access Intelligence heralds a transformative phase in the communications software industry, promising enhanced client services and innovation.
This strategic move not only strengthens Access Intelligence’s market presence but also sets the stage for future advancements in the industry.