REANDA-NEWS. June 03, 2015. The Board of MXC draws the attention of shareholders to the announcement issued by investee company Castleton Technology Plc, issued this morning at 7am. A fully copy of the text of the announcement is reproduced below:

Castleton Technology Plc

 ("Castleton" or the "Group")

Acquisitions of Impact Applications Limited and Brixx Solutions Limited

Castleton, the software and managed services provider to the public and not for profit sectors, is pleased to announce two acquisitions for a total consideration of 10 million (the "Acquisitions"), representing the fifth and sixth acquisitions under the Group's strategy to build the pre-eminent IT business focused on the public and not for profit sectors.

Highlights

·    5 million acquisition of Impact Applications Limited ("Impact"), provider of business critical repairs management and scheduling tools to the social housing sector

·     Expected sales of 2.8 million and EBITDA of ?0.8 million for the year to 31 August 2015

·     5 million acquisition of Brixx Solutions Limited ("Brixx"), provider of software enabling users to produce financial models and long-term forecasts

·     Expected sales of 1.3m and EBITDA of ?0.8 million for the year to 31 December 2015

·     Acquisitions further consolidate Castleton's strong position in its chosen markets; Group now supports c.400 of the UK's total 1,700 social housing associations

·     Significant cross selling opportunities

·     Group run rate revenues including Impact and Brixx of c.18 million, of which over 50% are recurring

Ian Smith, Chief Executive of Castleton, said, "Castleton is on its way to being the pre-eminent supplier of software and services to the social housing sector. These two further acquisitions reinforce that strategy. Nearly a third of all the social housing associations in the UK are now Castleton customers. The scope to provide multiple service lines to our customers, combined with the opportunity for cost saving synergies between our businesses, gives me great confidence that Castleton will continue to deliver for its shareholders.

The acquisitions of Brixx and Impact complete the initial steps in building our platform; our focus will now be on integrating our products and services."

Castleton offers a range of software and infrastructure services to the public and not for profit sectors, providing its customers with significant improvements in service, performance and insight. The acquisitions of Impact and Brixx add to the group of complementary businesses focused on the social housing sector comprising Montal, Documotive, Keylogic and Opus.

Impact, a provider of business critical repairs management software and scheduling tools to the social housing sector, has been acquired for ?5 million. In the year to 31 August 2015, Impact expects to deliver sales of ?2.8 million, of which ?1 million are recurring, and EBITDA of ?0.8 million, which would represent an increase on the previous year of 38% and 217% respectively. Impact has 22 housing association customers and private contractors using its product; the acquisition of Impact gives Castleton the opportunity to sell Impact's product into the existing Castleton customer base, which, with the addition of Brixx, numbers over 400 accounts.

Brixx, a provider of software enabling users to produce financial models and long-term forecasts, has also been acquired for ?5 million, of which ?0.5 million is deferred for 12 months. Brixx has developed a specific solution, HousingBrixx, in order to meet the needs of the social housing sector and this solution is currently used by over 300 UK social housing organisations. Organisations using Brixx's software are able to model the impact of improved service delivery thus enabling further investment. Brixx's broad customer base offers significant opportunities to cross-sell Castleton's suite of products and services.

Further details on the Acquisitions are set out below.

Castleton was advised on the Acquisitions by MXC Capital Advisory LLP, a subsidiary of MXC Capital Limited (AIM: MXCP). MXC Capital Limited is a core investor in Castleton, owning 24.3 per cent. of the issued share capital.