Shore Capital has reiterated its buy recommendation on accesso Technology Group PLC (AIM:ACSO, OTC:LOQPF) shares following the company's announcement of its $10 million acquisition of Paradocs Mountain Software, a provider of ski industry solutions.
According to Shore's analysts, the deal bolsters accesso's growing presence in the ski sector and brings 50 additional ski resorts into its portfolio, totalling 153 across North America.
Paradocs' all-in-one solution, MtnOS SM, now rebranded as accesso ParadoxSM, enables customers to manage various operations, including ticketing, snow school, retail, equipment rental, food and beverage, administration, and online sales.
The acquisition also provides opportunities for integrating other Accesso solutions, such as accesso Siriusware, for customers seeking fully hosted solutions, the Shore analysts said.
The deal, which consists of $9 million in cash and $1 million in stock, is expected to be earnings accretive this year, they added.
Paradocs saw revenues reach C$2.34mln in the year to August 2022, with a gross profit margin of 93.5% and a net profit margin of 16.6%.
“The deal should add 3% to Accesso’s bottom line,” analysts at Peel Hunt said.
The investment bank argues that the purchase sees the tech company “double down on its highest growth area” as 62% of new customers in 2022 came from the ski market.
Peel Hunt added: “The 38 new heads gained, with a speciality in ski markets, will also help with the development of future products.”
accesso shares opened 1.2% higher at 692p.
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