Mediasurface, an AIM-listed developer and distributor of content management software, has bought rival firm Immediacy in a deal that could be worth as much as £5.6 million.

Mediasurface plc, an AIM-listed developer and distributor of content management software, has bought rival firm Immediacy in a deal that could be worth as much as £5.6 million.

The company paid an initial £5 million on completion with an agreement to make a deferred payment conditional on the value of Immediacy’s net assets of more than £370,000.

The deal has been funded through a placing, managed by KBC Peel Hunt, and a £2 million loan provided by Lloyds TSB Corporate Markets.

This transaction broadens Mediasurface’s product portfolio through the addition of a mid-range content management technology as well as adding 206 support paying customers to its business.

Mediasurface’s chief executive, Lawrence Flynn, said this acquisition supports the company’s growth in this expanding market.

“Immediacy is complementary to our existing products, providing a web content management solution for mid-sized businesses thereby ensuring we have a compelling proposition to all sizes and types of companies and organisations and significantly increasing the marketplace that we can address,” he added.

“There is also a strong cultural, technological and business fit between the two organisations that will help us quickly integrate Immediacy and drive additional business through the enlarged Mediasurface group.”

Mediasurface’s tax adviser was Smith & Williamson, which also managed the financial due diligence review

Smith & Williamson’s due diligence team was led by assurance and business services director Keith Jackman, who was supported by Ed Parsons and Tom Hodgson. The tax team was headed by Adrian Walton.

“Strong financial due diligence is the bedrock of any acquisition,” Jackman said. “We worked with Mediasurface, Immediacy and the bank to ensure that the process was smooth and that everyone gained the assurances they needed.

“We look forward to continuing our relationship with Mediasurface as it develops through organic growth and further acquisitions,” he added.

Immediacy develops, markets and implements web content management software for medium-sized organisations.