Netcall has expanded its reach into Europe through the acquisition of Parble, a Belgian firm specialising in generative AI-driven document processing, for €10 million.
- The acquisition is set to bolster Netcall’s Liberty platform with advanced intelligent business processing technology suitable for rapid integration.
- This strategic move not only extends Netcall’s influence in the insurance sector but is also anticipated to enhance its earnings immediately in terms of adjusted earnings per share.
- Netcall has welcomed the expertise of Parble’s team, recognising the mutual benefits of cross-selling opportunities and digital transformation capabilities.
- The transaction involves a consideration of up to €8.7 million with a net debt assumption of €1.1 million, contingent upon Parble meeting specific revenue growth targets.
Netcall, a customer engagement software company listed in London, has strategically acquired Parble, a Belgian firm known for its generative AI-powered document processing solutions. The deal, valued at €10 million, allows Netcall to integrate Parble’s specialised intelligent business processing technology into its Liberty platform effortlessly, enhancing its digital transformation capabilities.
James Ormondroyd, CEO of Netcall, expressed the importance of this acquisition, stating, “Parble is a valuable addition to the Liberty portfolio, enhancing our digital transformation capabilities and providing two-way cross-selling opportunities. We are delighted to welcome the Parble team and benefit from their expertise, and we look forward to working together to improve our customers’ operational efficiency.”
The acquisition is expected to provide immediate earnings enhancement, particularly with regard to adjusted earnings per share, which is an advantageous aspect for Netcall. Moreover, the expansion solidifies Netcall’s presence in Europe and extends its reach in the insurance industry, an area ripe for such innovative advancements.
As part of the transaction, Netcall has agreed to a consideration of up to €8.7 million, along with the assumption of €1.1 million in net debt. This brings the total cost of the acquisition to €9.8 million (£8.3 million). A conditional €4 million payment is anticipated if Parble achieves a revenue growth target from €1.5 million at the time of acquisition to €3.3 million within three years.
Parble’s technology, which automates the data extraction and classification of structured, semi-structured, and unstructured data, aids businesses in digitising processes such as claims handling. This solution has processed over 58 million documents to date. In 2023, Parble reported a significant 30% increase in revenue to €1.48 million, alongside a profit before tax of €0.17 million, marking a turnaround from a previous loss.
The acquisition of Parble by Netcall represents a strategic investment in technological advancement and geographic expansion, promising operational synergies and financial growth.
