COMPLETION OF ACQUISITION OF CELATON

LONDON, UK: AdvancedAdvT Limited (AIM: ADVT), a leading provider of software solutions, has announced the acquisition of Celaton Ltd, an AI-driven intelligent process automation platform known for its inSTREAM technology, for a net cash consideration of £5.0 million. The strategic move is set to enhance AdvT’s offerings in business solutions, healthcare compliance, and human capital management sectors.

Celaton’s inSTREAM platform specializes in intelligent document processing, boasting capabilities such as data recognition, classification, and validation, all powered by machine-learning algorithms. This acquisition promises to deliver significant efficiency and compliance improvements, particularly to IBSS clients engaged in end-to-end business processing and automation.

The deal, which is funded from AdvT’s existing cash resources, aligns with the company’s growth strategy and follows Celaton’s £2.3 million investment in product development, enhancing AI features and multi-language support. Celaton’s impressive client roster includes multinational corporations like Talk Talk, Currys, and Capgemini.

Financially, Celaton reported a revenue of £3.3 million, with an EBITDA of £1.2 million before development costs, in the year ending 30 June 2023. The acquisition awaits approval under the National Security and Investment Act, with further updates to be announced.

AdvT’s year-end trading update revealed strong financial performance, with revenues and Adjusted EBITDA exceeding expectations. The company’s pre-tax profit is set to benefit from recent gains, including the sale of Synaptic Limited and investments in M&C Saatchi plc, totaling a net cash and investment position of £102.9 million as of 29 February 2024.

The transaction is considered a related party transaction, with significant shareholders Vin Murria and BGF Investment Management each owning about 45% of Celaton. AdvT’s independent directors, after consultation with Singer Capital Markets, have deemed the acquisition terms fair and reasonable for shareholders.

Vin Murria, AdvancedAdvT’s Executive Chairperson, said, “Celaton operates within a market experiencing significant rising demand for AI, automation and efficiencies. It will be immediately beneficial to the wider AdvT client base, with its e-invoicing, AI, document processing IP centric product. This is especially timely considering the recent notice that a material alternative supplier intends to withdraw from the market, creating further immediate opportunities.

“This is a highly complementary, earning enhancing addition to the Group, which will benefit from being part of a larger business.”

AdvancedAdvT reports robust interim financial results, exceeding expectations