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Dotdigital to wind-down non-core parts of Comapi acquisition

By Josh White

Date: Wednesday 22 May 2019

Dotdigital to wind-down non-core parts of Comapi acquisition

(Sharecast News) - Marketing and customer engagement software-as-a-service (SaaS) provider dotdigital Group has successfully completed the integration of the 'Comapi CPaaS' technology into the 'Engagement Cloud' platform of its core 'dotmailer' marketing platform, it announced on Wednesday.
The AIM-traded firm said the acquisition had delivered its core strategic objective, which was to accelerate the route to market of its 'Omnichannel Engagement Cloud' offering.

It acquired Comapi in November 2017.

As part of the integration plan, the board said it had identified that part of the Comapi business - Dynmark and Donky - was non-core to operations.

Following the completion of a thorough review of that business, it said it had decided to wind down the division.

There would be a small team put in place to support current clients and partners, with the directors adding that the course of action was expected to be net cash flow positive, allowing the firm to increase future investment in its higher-margin core SaaS products.

The fully-integrated Omnichannel Engagement cloud offering had 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, it added.

Moving forward, dotdigital said Dynmark and Donky would be classified as a discontinuing trading division, with the board anticipating an IFRS adjustment to goodwill.

"The company is pleased to confirm today the successful completion of the Comapi technology integration," said chief executive officer Milan Patel.

"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."

Patel said the acquisition had enabled the firm to enhance its 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."

Dotdigital said it intended to release a trading update covering the full-year results ending 30 June in mid-July.


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