dotdigital Group plc (AIM: DOTD), the leading 'SaaS' provider of an omnichannel marketing automation and customer engagement platform, is pleased to announce that it has successfully completed the integration of the Comapi CPaaS technology into the Engagement Cloud platform of the core dotmailer SaaS-based marketing platform. The acquisition has delivered its core strategic objective which was to accelerate the route to market of our Omnichannel Engagement Cloud offering. The Company acquired Comapi in November 2017.
As part of the integration plan, the Board has identified that part of the Comapi business, Dynmark and Donky, is non-core to the Group's operations. Following the completion of a thorough review of this business, the Board has decided to wind down this division. There will be a small team put into place to support current clients and partners. This course of action is expected to be net cash flow positive and allows the Company to increase future investment in its higher margin core SaaS Products.
The fully integrated Omnichannel Engagement cloud offering has already started to provide tangible benefits in terms of prioritisation of resource allocation, strengthening of the talent pool, investment into the core business and clarity of marketing message.
Moving forward Dynmark and Donky will be classified as a discontinuing trading division and the board expect an IFRS3 adjustment to goodwill.
The Company intends to release a trading update covering the full year results of the Company for the period ending 30 June 2019 in mid-July 2019.
Milan Patel, CEO of dotdigital, commented:
"The Company is pleased to confirm today the successful completion of the Comapi technology integration. At the time of the acquisition we confirmed that Comapi was part of our roadmap in executing our strategy of becoming an omni-channel marketing automation platform. The acquisition has enabled us to enhance our software platform more quickly and more effectively than could be achieved organically.
"The time is right for the Company to focus management and financial resources on those areas which provide the highest return on capital."
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.
For further information please contact:
dotdigital Group Plc Milan Patel, CEO Paraag Amin, CFO
Tel: 020 3770 1502
Canaccord Genuity (Nominated Adviser and Joint Broker)
Tel: 020 7523 8000
Jonathan Barr - Sales
finnCap (Joint Broker) Stuart Andrews, Corporate Finance Rhys Williams, Sales
Tel: 020 7220 0500
N+1 Singer (Joint Broker) Shaun Dobson, Head of Corporate Finance Alex Bond, Corporate Finance
Tel: 020 7496 3000
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