IMImobile has agreed to pay £2.5m as early settlement of the performance-related deferred consideration for its acquisition of Healthcare Communications in December 2017.
IMImobile acquired Healthcare Communications for an initial consideration of £9m payable in cash upon completion, with a further deferred consideration of up to £6m payable in cash or shares, based on achievement of gross profit growth and EBITDA targets over the next two years.
Healthcare Communications has since performed at the top end of management expectations, achieving over 30 per cent year-on-year gross profit growth in the period to December 2018. IMImobile said it had decided to settle the deferred consideration early “in order to accelerate integration activities and to further capitalise on market opportunities”.
IMImobile had agreed to pay to the sellers an aggregate settlement amount of £2.5m comprising £1.75m in cash, payable in May 2019, and £0.75m through the immediate issue of 348,837 ordinary shares of 10p each in the company.
Following payment of the settlement amount, there will be no further deferred consideration