Telephonetics, a provider of speech recognition and voice automation services, has acquired Eden Origin, a provider of codeless enterprise application integration, business process management and mashup services. Both the companies are based in the UK.
According to Telephonetics, the acquisition merges two complementary technologies from each business that have the potential to transform clients’ efficiency both at the business process level and in their day-to-day interaction with customers.
The consideration for the acquisition is approximately GBP0.72m in cash payable on completion subject to a completion account adjustment. In addition, a contingent consideration of up to a further GBP0.2m is payable in cash on Eden achieving revenues within the first year of completion of up to GBP0.7m. Up to a further GBP2.8m is payable in a mixture of cash and shares over the two years post completion dependent on the achievement of revenue targets of between GBP1.56m to GBP10m over that period.
Any new shares allotted as consideration will be priced based on the average mid-market price preceding issue subject to a minimum of 10 pence per share. The cash element of the consideration is to be funded from Telephonetics’s existing resources.
Anthony Mckay, CEO of Telephonetics, said: We are extremely excited about this transaction. It will allow us to provide a broader range of solutions into existing markets and therefore accelerate sales via our traditional channels. Additionally it will open up opportunities where Eden solves the complexities around disparate internal systems that are often required to handle customer interactions.
David Waldron, managing director of Eden, said: This deal with Telephonetics provides Eden with immediate access to a large base of public sector customers where we are able to demonstrate the benefits of Eden in enabling shared services and single view. The combination with Telephonetics’s established voice automation and call handling solutions will ensure we are extremely well positioned to make significant progress in this sector.
