AdvancedAdvT Ltd (LSE:ADVT), the acquisition vehicle led by Vin Murria, has completed the acquisition of five software businesses from Capita and intends to move to an AIM listing.
The purchase, which constitutes a reverse takeover under London listing rules, was agreed in June for a combined enterprise value of £33mln cash.
In the 2022 calendar year, the five businesses, CIBS, CHKS, Retain, WFM and Synaptic, generated a combined revenue of roughly £35mln, of which around 74% is recurring or from software-as-a-service (SaaS).
The acquisitions were conditional upon UK National Security and Investment Act approval, which has been received, ADVT said.
Capita's sale is part of its long-stated intention to sell non-core businesses. It said in June that senior management teams and employees will remain with their businesses as they transfer to new ownership.
As for ADVT, Murria said in June the plan is similar to her model in previous buy-and-build vehicles, "support the teams in delivering strong new organic growth - both in existing sectors as well as new areas including data, analytics, managed service and digital transformation opportunities", with a "substantial war chest" for more M&A.
As the deal is a reverse takeover, ADVT’s shares were suspended from the London main market listing, which the company said will remain the case until it provides full disclosures.
The company said it is considering making an application to AIM, which would require it to publish an admission document.
ADVT is backed by Marwyn Value Investors Ltd (LSE:MVI), which has a 15.4% stake, while Murria and her husband own a 13.14% stake.