ONE OF LIMERICK’S software stars has snapped up a US rival in a deal that could be worth more than €5 million.
It was announced this morning that AMCS has agreed to buy Brady Recycling Solutions, a subsidiary of UK software company Brady PLC.
In a statement, Brady PLC said that, following a review of its strategic plan, it has “disposed of its non-core US recycling business, for a maximum cash consideration of £4.6m (€5.3 million) to AMCS Group”.
“AMCS has agreed to acquire the entire share capital of Brady US Holdings Inc and Systems Alternative International LLC”, which it said together made up the recycling business.
Brady Recycling produces software that is used by companies and individuals in the waste management industry.
AMCS will shell out about £3.6 million in upfront cash payments, with the balance payable in the 18 months following the completion of the deal.
The US recycling business generated sales of £4.9 million and made an operating profit of £800,000 in the 12 months to the end of December 2016, the most recent year for which financial information is available.
Brady said that it is expected that the entity will record an operating profit of £300,000 in 2017.
The deals marks the latest in a series of acquisitions for AMCS, one of Limerick’s most promising tech companies.
The firm makes software and technology that is used by those in the waste management industry.
In 2014 it raised €23.5 million and announced plans to hire 130 staff. Since taking on the extra funding it has bought Dublin-based software firm Senddr in May and snapped up firms in the Netherlands, the US and Australia.
Its most recent accounts show that its turnover rose to €33 million in 2015, up sharply from €26 million the year before.
It made a loss of €2.7 million, which was also a significant increase on 2014′s figure of just under €1 million. However, recording a loss would not be unusual for a fast-growing software firm with venture capital backing.
AMCS employed 270 people in 2015, up from 216 the year before.