LONDON (ShareCast) - (Sharecast News) - AdvancedAdvT announced on Wednesday that it has agreed to acquire HFX, a UK-based provider of cloud-based workforce management software, for total consideration of £5.3m, net of £0.6m in acquired cash.
The AIM-traded firm said the deal included a £2m deferred payment over two years, and would be funded from the group's existing cash resources.

HFX generated £3.39m in revenue for the year ended 31 December, with 73% of that revenue recurring.

Pre-exceptional EBITDA for the period was £0.93m, as the company reported net assets of £2.51m.

AdvancedAdvT said the acquisition would strengthen its existing workforce management software portfolio, adding a complementary software-as-a-service (SaaS) product that serves over 450 customers, including SMEs and smaller enterprise clients.

The transaction aligned with the group's strategy to grow its recurring SaaS revenue base and expand its UK footprint, while offering on-premise clients a migration path to cloud-based solutions.

"HFX is a recognised leader in workforce management software," said AdvancedAdvT chair Vin Murria.

"It expands our presence in the space and aligns strongly with our strategy to invest in quality software businesses that drive efficiency and long-term value for its customers."

Murria said the company was "looking forward" to working closely with the HFX team to "unlock value and deliver enhanced integrated solutions" to a broader client base.

"We continue to look for complementary acquisitions that further enhance our offering to clients and create value for shareholders."

At 1009 BST, shares in AdvancedAdvT were up 1.16% at 156.8p.

Reporting by Josh White for Sharecast.com.

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