Castleton plunges for communications specialist Deeplake

Housing specialist bolsters software portfolio

Managed services provider Castleton Technology has acquired housing industry specialist Deeplake Digital in a move which bolsters its intellectual property portfolio.

The £1.8m deal will see Castleton take 100 per cent of Deeplake and its proprietary comms software, which it says is the market leader for landlord and tenant communication in the UK.

Dean Dickinson, CEO at Castleton, said: "This strategic acquisition enables us to capitalise on the significant opportunities in the social housing market's market shift towards digitalisation, building on the capabilities the group has already developed.

"Deeplake Digital adds scale, customers, skills, market knowledge and specific digital communication intellectual property and has a great reputation for delivering a quality product and service, evidenced by its high customer retention levels over the past 10 years.

"This acquisition provides additional cross-selling opportunities into Deeplake Digital's customer base, in line with the group's growth strategy."

Castleton said the deal will add £800,000 to its annual revenue, 80 per cent of which will be recurring.

The firm reported a revenue of £23.3m in its last financial year.

Castleton specialises in providing IT support to the housing space and has seen its share price rise over recent months after securing a number of lucrative deals.

The firm secured a managed desktop deal worth £2.6m with North Hertfordshire Homes last year, while more recently it signed a five-year £1.3m contract with Connect Housing Association.