Electric Guitar PLC (AIM:ELEG), the digital marketing and advertising company said it is acquiring Mymyne Limited, a developer of data-related software solutions, in an all-paper deal worth up to £149,000.
Mymyne, set up in 2019, specialises in data-related software and marketing services. Despite modest revenues, Mymyne's intellectual property, including tools for data collection and digital advertising, adds significant value to Electric Guitar's portfolio.
The business is an ideal fit with the company's main operation, 3radical, according to chief operating officer, Richard Horwood.
"Mymyne not only brings Electric Guitar additional intellectual property, but also brings in-house key sales and marketing functions that had previously been outsourced by 3radical, and which we can now fully apply to the other digital marketing businesses we will be acquiring as part of our buy and build strategy," he said.
"Moreover, the deal achieves cost savings that more than offset the value of the all-share consideration, regardless of the other benefits of the acquisition."
Along with the acquisition news, Electric Guitar provided a brief update on trading in which it said it was seeing traction for its new expedited sales approach 3radical.
"In particular, we recruited a very experienced new managing director for 3radical with extensive sales and marketing experience in the sector; added direct sales, marketing and business development resources in the UK; and made multiple business development trips to major customers and prospects in APAC," investors were told.
They were also informed that Tanvier Malik, of Sanderson Capital, has been appointed capital markets consultant to Electric Guitar.