Sanderson Group buys e-commerce firm One iota for £5.43m

The deal will enable the Sanderson Group to increase its share of the mobile applications market.

Sanderson, which is a software and IT services business, has  acquired the entire issued  share capital of One iota, a provider of cloud-based multi- channel retail services, for up to £5.43m.

Sanderson, which employs around 30 staff at its manufacturing base in Sheffield, plans to  raise £3.5m, before expenses, by a placing of more than six million new shares.

The company, has 400 customers, including big names such as Hotel Chocolat and Associated British Foods.

Sanderson supplies software and IT services to the multi-channel retail and manufacturing markets.

One iota, which has 20 staff and is based in Rossendale, Lancashire, provides cloud-based, multi-channel services via mobile, tablet and in-store devices.

Commenting on the acquisition, Christopher Winn, the company’s chairman, said yesterday: “We are delighted to welcome the One iota team, led by Damian Hanson and David Hague into the Sanderson group.

“Following the acquisition of Catan Marketing in August  2013, the One iota acquisition  further strengthens the company’s position in the rapidly  expanding mobile enabled  e-commerce and online sales markets.”

Adrian Frost, finance director of Sanderson, said: “We are very pleased to complete this strategic acquisition and announce the proposed fund raising.”

Analysts at Charles Stanley said yesterday: “One iota is a highly respected provider of optimised mobile applications for retail and counts Thorntons, Littlewoods, Superdry, Very.co.uk, and many others, as customers.

“The acquisition will provide the company with a highly talented team that should integrate nicely into Sanderson’s existing operations and enhance both experience and capacity for new and existing customers.

“Initial consideration for the acquisition will come from £750,000 in shares at a price of 57p and £2.38m in cash.

“One iota can help Sanderson expand further into mobile  applications, win new customers, and provide the latest  mobile technologies to its existing clients.

“Sanderson’s balance sheet and public market listing can help One iota close new business that previously might not have been possible due to its size.”

Chris Schofield, Adrian Ballam, Dominic Lush and Lucy Holroyd from law firm Schofield Sweeney, which has offices in Leeds and Bradford, advised Sanderson on both the acquisition and the share placing.

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