15.04.2020, 15:06
MRI Extends Acquisitions Spree
MRI Software has announced the acquisition of Castleton Technology PLC for £82.2 million, its second acquisition of a UK-based social housing software provider since March.
The acquisition, which has been unanimously approved by the boards of both companies, is pending shareholder approval and follows MRI’s acquisition of privately held Orchard Information Systems which was announced last month.
Castleton’s cloud-based technology is used by social housing providers in the UK, Republic of Ireland and Australia to enhance every aspect of customer service and business management, from building repairs to document management and payment collection. MRI plans to build on Castleton’s capabilities, providing investment and access to global expertise that will accelerate growth.
Commenting, Patrick Ghilani, MRI Chief Executive Officer, said:
“The acquisition of Castleton is a significant development for our business, delivering us scale in the UK real estate market and social housing sector in particular – providing a platform to further accelerate our growth globally.
“A combined MRI and Castleton will be extremely well equipped to address the varying needs and evolving business models of the UK and Australian social housing sectors, with a comprehensive and flexible product portfolio.
“We are excited to work with the management team and employees of Castleton, to build upon their strong position in the social housing sector, utilising MRI’s complementary experience, capabilities, network and resources.”
David Payne, Castleton’s non-executive Chairman, added:
“Castleton has performed well since embarking on the strategy in 2013 to build a public sector-focused software and managed service business, growing organically as well as through a series of acquisitions. The competitive landscape is changing and as such I welcome the opportunity for Castleton shareholders to realise their investment at a premium of 43.9 per cent to yesterday’s Closing Price.
“I would also like to take this opportunity to thank all the employees of Castleton for all their hard work and support. The Castleton Directors believe that MRI Software will be an excellent partner to Castleton and its management and employees. We believe the acquisition is in the best interests of all our stakeholders and unanimously recommend that shareholders vote in favour of the resolutions relating to the acquisition.”
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