Netcall has strategically acquired Belgian firm Parble for €10m, marking its European expansion.
- The acquisition strengthens Netcall’s business processing technology with Parble’s GenAI-powered solutions.
- This move positions Netcall to increase its presence in the insurance sector and expand its European customer base.
- Parble reports substantial growth with a 30% revenue increase in 2023, enhancing its appeal as an acquisition target.
- Netcall CEO welcomes the acquisition as beneficial for both digital transformation and operational efficiency.
Netcall has strategically acquired Parble, a Belgian company known for its generative AI-powered document processing solutions, in a €10 million deal. This acquisition is a significant step for Netcall in its quest to expand into European markets, bringing advanced technological capabilities into its portfolio. The inclusion of Parble’s specialised technology is expected to integrate swiftly with Netcall’s existing Liberty platform, enhancing the capabilities offered to its clients and widening the horizons of customer engagement and service efficiency.
Shares in Netcall increased by as much as 4% following the immediate market response to this announcement. This reflects investor confidence in the strategic direction and anticipated financial gains from this acquisition. Parble’s innovative solutions automate the extraction and classification of various data types, aiding in faster, more informed decision-making processes. Such technology is particularly valuable for sectors like insurance, which is a targeted area for Netcall’s European expansion.
Parble, headquartered in Brussels, has processed over 58 million documents and reported a 30% increase in revenue to €1.48 million in 2023. This impressive growth has transformed their previous loss into a pre-tax profit, outlining the company’s robust business model and increasing its attractiveness as an acquisition. This financial turnaround supports Netcall’s assertion that this acquisition will be earnings-enhancing concerning adjusted earnings per share.
Netcall CEO, James Ormondroyd, stated: “Parble is a valuable addition to the Liberty portfolio, enhancing our digital transformation capabilities and providing two-way cross-selling opportunities.” This sentiment underscores the strategic importance of acquiring Parble, not only for its technological assets but also for the expertise that the Parble team brings to enhance operational efficiencies and drive revenue growth objectives.
The financial terms of the deal include up to €8.7 million, along with the absorption of €1.1 million in net debt, culminating in a total value of €9.8 million (£8.3 million). A contingent payment of €4 million hinges on Parble achieving its revenue growth target, further incentivising performance alignment post-acquisition.
The strategic acquisition of Parble by Netcall exemplifies a well-planned expansion into Europe, leveraging advanced AI technology to enhance service offerings and broaden market reach.
