Remote meetings firm LoopUp has today announced the acquisition of conferencing services provider MeetingZone from GMT Communications Partners.
The deal, which is worth around £61.4m, constitutes a reverse takeover, and so is still subject to share holder approval.
Money for the acquisition was raised through a £17m loan on top of £50m in cash through 12.5m shares at 400p each.
The deal was mediated by Arma Partners, who worked with MeetingZone to find the most suitable trade buyer rather than selling through the usual auction process.
LoopUp's directors said the acquisition would allow the new group to pursue its strategy of transferring MeetingZone's audio conferencing business over to the LoopUp product platform.
Greater scale will also allow the group to promote the established "network effect" in LoopUp's product to boost its buying firepower.
The company is expecting the deal to produce at least £2.8m in cost savings in the first full year of financial ownership up to December 2019.
Steve Flavell, Co-CEO of LoopUp commented:
LoopUp exists to transform, for the better, the way remote meetings take place. We remove countless pain points from a vital means of everyday business communication and improve productivity. This is something we have been able to do successfully, driving consistently strong, profitable growth over the past few years.
The acquisition of MeetingZone will help us to enhance our already strong competitive position, add significant scale to our business and amplify the network effect of our offering. It will also provide us with an opportunity to reinvest further in our business, in particular our people, product and our 'Pods'. We thank all of the existing and new shareholders who have supported this proposed acquisition and who, like us, see it as an exciting opportunity to expand LoopUp's position and drive long-term growth.