LONDON (ShareCast) - (Sharecast News) - AdvancedAdvT announced the acquisition of Goss Technology Group for a total consideration of £13.5m, comprising £8.5m in cash and £5m in new shares.
After factoring in £6.4m of cash held by Goss, the net consideration was about £7.1m.

Goss, which provides low-code digital platforms for public sector transformation, generated £5.35m in revenue in the year ended 30 June 2024, 71% of which was recurring.

EBITDA for the period, excluding capitalised development costs, was £0.77m, and net assets stood at £3.25m.

The AIM-traded firm said the deal was conditional on regulatory clearance under the National Security and Investment Act, which had now been received.

AdvancedAdvT said the acquisition would strengthen its offering to public sector clients and support growth in recurring software-as-a-service (SaaS) revenue.

The addition of Goss was expected to enhance product integration, open new cross-selling opportunities, and position the group to benefit from structural changes in local government and the broader shift towards digital public services.

As part of the deal, 3.23 million new shares would be issued, with admission to trading on AIM expected on or around 2 June.

Following admission, the company would have 136.4 million ordinary shares in issue.

"We are delighted to announce the acquisition of Goss, a recognised leader in digital transformation in the public sector," said AdvancedAdvT's chair Vin Murria.

"This acquisition aligns strongly with our strategy to invest in quality software businesses that drive efficiency and long-term value for its customers."

Murria said Goss's "innovative low code solutions" and "deep-rooted relationships" within local government would strengthen the company's offering and broaden its reach.

"We look forward to working closely with the Goss team to unlock value and deliver enhanced integrated solutions to a broader client base.

"We continue to look for complementary acquisitions that further enhance our offering to clients and create value for shareholders."

At 0942 BST, shares in Advanced AdvT were up 2.39% at 158.7p.

Reporting by Josh White for Sharecast.com.

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