Castleton snaps up Indian IT consultancy

Acquisition marks second of the year so far for MSP

Managed service provider Castleton Technology has splashed out £350,000 on an Indian firm previously known as CarbonNV InfoLogic.

The purchase marks the second of the year so far for the Birmingham-headquartered MSP, after it snapped up housing industry specialist Deeplake Digital last month.

The Indian company is now known as Castleton India and has offices in Bangalore and Vadodara.

Castleton said that the Indian company has provided additional development capability via a service agreement over the current financial year.

It added that the acquisition will allow the MSP to secure additional development capability and skills for its 21 permanent employees.

The AIM-listed MSP provides IT support to the housing space, and reported turnover of £23.3m in its last financial year.

The deal comprises 200,331 ordinary shares in the capital of the group and £154,678 in cash.

"The acquisition of Castleton India follows a very successful working relationship between the UK and Indian teams over the past 11 months," said Dean Dickson, Castleton CEO.

"This period has seen delivery of a number of products including Castleton.DIGITAL, allowing us to bring new solutions to the market quicker and at a reduced cost.

"I look forward to working closely with the combined onshore and offshore team to bring our product road map to market over the coming years."

The acquisition is expected to be completed on 22 February 2019.