logo-loader
viewRosslyn Data Technologies PLC

Rosslyn Data adds Integritie to its data mining portfolio

Integritie’s specialist is analysing unstructured data and this will be an important add-on for Rosslyn

picture of analytics
Data mining is Rosslyn's speciality

Rosslyn Data Technologies PLC (LON:RDT) has snapped up rival data miner Integritie (UK) to provide a source of recurring sales and broaden its product reach.

Consideration will be £2.59mln to be funded from a £2.21mln placing and up to a further £500,000 through an open offer.

Both are at price of 4.5p or a round a 43% discount to the close yesterday.

Integritie’s specialist is analysing unstructured data and this will be an important add-on for Rosslyn according to chief executive Roger Bullen.

WATCH: 'They add tremendous value to us', says Rosslyn Data's boss on Integritie buy

CLICK HERE: For a daily round-up of all the Proactive news

“The customer base is complementary to our own and the acquisition will enable us to cross sell both structured and unstructured data services to an enlarged customer base.”

Another key attraction, Rosslyn said, is that it will reduce the reliance on large contracts with long sales cycles in its core data mining business, something which has led to uneven sales over the past three years.

The deal will generate a substantial increase in Rosslyn's recurring revenues, he added, boosting the quality of earnings and reducing overall risk from the ‘reliance on the sale of cumbersome revenue items, the timing of which is always difficult to predict’.

An enlarged recurring revenue base will be more closely aligned to the group's cost base, he added, while in future Rosslyn can help enterprises to mine their structured and unstructured data simultaneously from one place.

An earn-out agreement could see the deal costing a further £750,000 if sales reach £5-7mln.

Integritie made a loss of £2.4mln in 2015 on sales of £3mln.

Costs saving from merging the two companies are forecast at £0.8mln.

Quick facts: Rosslyn Data Technologies PLC

Price: 5.75 GBX

AIM:RDT
Market: AIM
Market Cap: £11.09 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Rosslyn Data Technologies PLC named herein, including the promotion by the Company of Rosslyn Data Technologies PLC in any Content on the Site,...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Investor Update: Rosslyn Data Technologies grows revenues and generates cash

Top stories from the Proactive Investors UK newsroom: Rosslyn Data Technologies PLC (LON:RDT) cut its operating losses by 75% in the last financial year, while also turning cash generative and, according to the company, is well-positioned in the current year. In a trading update ahead of...

on 29/5/19

RNS

PDMR Shareholding

2 weeks ago

Second Price Monitoring Extn

2 weeks, 1 day ago

Price Monitoring Extension

2 weeks, 1 day ago

Contract Win

2 weeks, 1 day ago

Half-year Report

2 weeks, 1 day ago

Contract Wins

3 weeks ago

Trading Update

on 11/12/19

Holding(s) in Company

on 26/11/19

2 min read