JCurve agrees to buy cloud firm Full Circle

Australian cloud and mobility services provider JCurve Solutions has announced a deal worth up to $2.9 million to acquire cloud software and telecom consulting services company Full Circle Group.

The two companies have signed a non-binding agreement covering the planned transaction. Contingent on conditions, including the outcome of due diligence investigations, the deal is expected to close by the end of May.

The proposed deal will see JCurve paying $1.8 million in cash and $850,000 worth of new shares for the acquisition.

JCurve will issue additional shares worth up to $250,000 if Full Circle achieves milestones including coming within range of its revenue target for the current financial year.

Announcing the planned deal to investors, JCurve said the acquisition will take out a leading competitor, supplement existing revenues at its telecom-focused subsidiary JTel and help offset JTel’s product development expenses.

“Adding another cloud recurrent revenue business in the mobility arena continues to build the solid foundation of JCurve Solutions as it ramps up for growth,” JCurve managing director Graham Baillie commented.

To help fund the acquisition and accelerate its marketing efforts, JCurve has raised $2.5 million via a placement to sophisticated investors.

The shares were priced at $0.05 apiece, a 16.7% discount to the last trading price before the placement was conducted. JCurve shares were trading at $0.057 as of 3 pm on Thursday.

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