24 November 2017 – acquisition
The software and IT services group has announced the acquisition of Anisa Consolidated Holdings Limited for an enterprise value of £12m. Anisa specialises in the delivery of integrated supply chain and enterprise resource planning solutions and the business will complement the Enterprise division of Sanderson. The enlarged business will provide additional market opportunities for the group which will benefit from the services developed by Anisa. In the year to 31 December 2016, Anisa had revenues of £10m with recurring revenues accounting for over 50% of these whilst operating profit for the year was £0.38m. The initial consideration for the acquisition will be £5.21m and this will be satisfied partly by cash and partly through the issue of new Sanderson shares at 70p – these will have a three year lock in. In addition, Sanderson is taking on the debt of Anisa whilst there is also further potential consideration some of which depends on the future profits of Anisa. Following the deal the enlarged group will have no net bank debt and will have combined annual revenues of over £30m. The acquisition has been well-received by analysts and we maintain our recommendation of BUY.