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AIM-listed AdvancedAdvT (AdvT) has announced the acquisition of digital platform provider Goss Technology Group—a deal that significantly strengthens the software solutions provider’s public sector footprint.
The acquisition was completed for a total consideration of c.£8.5m in cash from existing resources and c.£5.0m in ordinary shares. With £6.4m of cash acquired, the net consideration amounts to approximately £7.1m. It follows the purchase of workforce management provider HXF earlier this month (see AdvancedAdvT continues march forward with HFX acquisition).
Founded in 1999, Goss helps organisations build, deliver, and manage online services and websites. The low-code tools within its digital platform allow its clients, which predominantly comprise local authorities, to quickly deploy services that can enhance user experiences and streamline operations.
In its last full financial year (12 months ended 30 June 2024), Goss reported revenue of £5.35m of which 71% was recurring, with EBITDA (excluding the capitalisation of development costs) coming in at £0.77m. Recent contract awards include Sunderland City Council, St. Helens Council, Gateshead Council, and the Government Property Agency.
This is a positive move by AdvT, which aligns well with its strategy of building long-term growth through recurring SaaS revenues. It complements its existing public sector focused business, which was established through the acquisitions from Capita in 2023 (see AdvancedAdvT to buy five Capita software businesses) and will provide significant new cross-selling opportunities.
Although the local government sector continues to face substantial financial challenges, there remains plenty of opportunities for technology suppliers that can demonstrate a clear return on investment, streamline workflows, and improve productivity across priority service areas. The addition of Goss will strengthen AdvT’s proposition in this respect and also enhance its ability to benefit from the UK government’s local government reorganisation and devolution agenda.
Posted by: Dale Peters at 09:46
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acquisition
digital
low-code
local+government
public+sector