Proactis Holdings Plc (LON:PHD) CEO Rod Jones talks to DirectorsTalk about the proposed acquisition of Millstream Associates Limited. Rod describes its business model, any changes needed, any cross-sell opportunities and synergy savings.
The Acquisition is in line with PROACTIS Holdings Plc stated growth strategy, with Millstream having strategically complementary solutions and technology, along with an attractive customer base. The historical financial profile of Millstream has included conservative revenue growth, with the majority of revenue being recurring in nature, with strong profit margins and cash generation. The Board anticipates cross selling opportunities to develop following the completion of the acquisition (“Completion”) and the Board believes that Millstream’s supply side expertise and knowhow will support PROACTIS’ supplier commerce offering. The Acquisition is expected to be immediately earnings enhancing following its Completion. The Board looks forward to working with the Millstream management team through the integration process and, further forward, to realising the potential synergies of the combination.