Join our community of smart investors

Eckoh rings up Netcall

Secure payment group Eckoh is in advanced talks to acquire enterprise software group Netcall
July 1, 2015

Update: Eckoh has scrapped its takeover plans following discussions with Netcall's shareholders and after a major Netcall shareholder proved reluctant to back a deal. Both company's boards are "disappointed" with the outcome.

IC TIP: Sell at 40p

Eckoh (ECK) is in advanced talks to acquire Netcall (NET). The secure payment and customer service specialist plans to offer 1.25 shares and 13p in cash for each Netcall share, valuing the customer-engagement software group at around £88m.

Eckoh chief Nik Philpot thinks a tie-up would generate cost savings, widen the group's customer base and broaden its product range. It would also combine Netcall's expertise in social media and web chat software with Eckoh's secure payment offerings. For instance, the group's new Haloh product replaces customers' debit and credit card numbers with strings of random digits or 'tokens', making them harder to access or steal.

At the half-year mark, broker N+1 Singer forecast EPS of 1.3p in the year to March 2016 (from 1.2p in full-year 2015).