Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Dotdigital snaps up customer engagement group Comapi for £11mln

“By adding Comapi to our business, dotdigital is executing on its vision to be an omni-channel marketing automation platform”
live chat worker
Comapi's software allows its customers to have a 'live chat' feature on their website

Bulk-email specialist Dotdigital Group PLC (LON:DOTD) has taken another step towards becoming the go-to “omni-channel marketing automation platform” after snapping up customer engagement group Comapi for £11mln.

A further £1.2mln in share options is potentially due to the Cheltenham-headquartered business depending on its performance over the next couple of years.

READ: DotDigital making progress on all fronts

Comapi specialises in ‘live chat’ and has built a software platform that allows clients to communicate directly with their customers via email, SMS and social messaging apps.

Dotdigital said the deal would make it the “most advanced platform” on the market and make it more relevant in the lucrative Asian market.

READ: Dotdigital flags up another year of growth

“By adding Comapi to our business, dotdigital is executing on its vision to be an omni-channel marketing automation platform,” said Dotdigital chief executive Milan Patel.

“Comapi has built an impressive platform that, integrated with our software, will allow our customers access to the next generation of consumer engagement marketing technology aiding retention and boosting our competitive advantage in securing new customers.”

Comapi generated underlying earnings (EBITDA) of £1.2mln in the year to December 2016, on revenues of £7.8mln. On completion of the deal, it will have a positive net asset position, Dotdigital said.

Good use of spare cash, says broker

“With the three organic routes to growth demonstrated ably with strong final results (and a particularly strong second half) revealed in October, dotDigital is now making best use of cash resources in acquiring further impetus to growth,” wrote finnCap analyst Andrew Darley.

“Comapi, acquired for £11m initial consideration with further deferred conditional consideration of £1.2m in shares over two years, provides omni channel messaging and cloud communication: this extends dotDigital’s platform, maintaining its market leading integrated functionality; allows a more personalised service for clients across multiple communications channels (email, SMS, twitter etc); and positions the group well for the Asian market, which remains mobile led.”

Darley has lifted his full-year underlying earnings forecast by 12% for 2018 and 14% for 2019, while the analyst has also upped his price target to 100p.

Shares were up 5.2% to 91.5p in late morning trade on Wednesday.

--Updates for share price and broker comment--

View full DOTD profile View Profile

Dotdigital Group plc Timeline

January 23 2018

Related Articles

Clint Eastwood
May 25 2018
The group’s first piece of original content, a documentary called Pandas, premiered on 24 March this year, to positive reviews.
Mobile users holding phones up
September 05 2018
The mobile advertiser is placing itself at the forefront of the digital revolution as companies and brands increasingly look to the web as the next forefront of advertising
August 15 2018
Milan Patel, dotdigital’s chief executive officer said: "This year reflects substantial progress against the company's strategic aims in accelerating our platform capabilities into the omnichannel space, continuing to innovate our product, growing geographically and deepening our relationships with our strategic partners”

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 suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use