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Coats Group expanding into the Cloud with US$12mln purchase of software solutions provider for the apparel industries

The FTSE 250-listed industrial thread manufacturer said ThreadSol's cloud-based digital applications provide an excellent fit with its existing Coats Global Services business

The Cloud
Coats said the initial cash outflow for the acquisition is around US$5mln, with further payments of up to US$7mln over the period to 2022

Coats Group PLC (LON:COA) is expanding into the Cloud with the acquisition of ThreadSol, which provides software solutions for the apparel and footwear industries, for a cash consideration of up to US$12mln.

The FTSE 250-listed industrial thread manufacturer said ThreadSol's cloud-based digital applications provide an excellent fit with its existing Coats Global Services business.

READ: Coats Group investing US$5mln in “disruptive technology” that could revolutionise the thread industry

The group said the initial cash outflow for the acquisition is around US$5mln, with further payments of up to US$7mln over the period to 2022.

Rajiv Sharma, Coats Group’s chief executive, commented: 'ThreadSol is an exciting acquisition that supports a key aspect of our growth strategy: to build an innovative software solutions business for the apparel and footwear industries.”

In early morning trading, Coats Group shares were 0.4% higher at 81.10p.

Earlier this month Coats announced that it was investing US$5mln in a “disruptive technology” that it believes has the potential to revolutionise the thread industry.

The firm said it was paying the money for a 9.5% share in Israeli-based technology start-up, Twine Solutions.

Quick facts: Coats Group PLC

Price: 76.85 GBX

LSE:COA
Market: LSE
Market Cap: £1.11 billion
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