App monitoring platform operator appScatter Group PLC (LON:APPS) has agreed to buy digital security firm Abilott Limited for up to £2.245mln.
Abilott provides digital security services to companies launching new products, looking to become a gaming operator or expanding into new markets. Its clients include Gamesys, Paddy Power, Betfair, Virgin Games, Bodog.
AppScatter said the acquisition is in line with the company’s strategy to develop its mobile app management platform and presents an opportunity to expand its security products.
The company will pay an initial consideration of £1.245mln and a potential further £1mln depending on whether the business meets certain performance targets in the 12 months after completion of the acquisition.
Abilott will also assist in the building of automated app tools to be compliant with GDPR rules for the appScatter platform.
Deal to increase revenue opportunities
AppScatter said the enlarged group will be able to identify security issues in customers mobile applications and rectify the issues identified, which will “significantly” increase revenue opportunities.
For the past two years, the companies have been working closely together with Abilott providing security and regulatory compliance as well as support for threat analysis products for appScatter.
"The acquisition of Abilott is a strategic milestone for appScatter, enabling us to bring our security services that we previously outsourced in-house, significantly improving our margin,” said appScatter chief executive Philip Marcella.
“Having worked with the Abilott for some time, we are already aware of the benefits the acquisition brings to our growing product base and the services we can provide to our customers.
Recent acquisitions enhance appScatter offering
The deal follows the £13.5mln takeover of German firm Priori Data GmbH in July.
Marcella said the acquisition of Abilott and Priori will significantly boost the overall appScatter offering.
Last year Abilott generated revenue of £1.5mln and made a loss before tax of £170,998.