Software and services specialist Gresham Technologies has completed the acquisition of a Solihull-based counterpart in a deal worth up to £3.6m.

Inforalgo Information Technology provides connectivity and automation services for financial institutions.

For the year to 31 March 2020, it generated revenues of £1.4m, of which almost £1.2m was recurring software revenue, and recorded a statutory loss of £500,000.

The acquisition, which is expected to be immediately earnings enhancing, supports Gresham’s plan to create a global enterprise financial technology business.

An initial consideration of £2.3m is being satisfied in cash from Gresham’s existing reserves. The deferred consideration of up to £1.3m will be paid in two sums with up to £900,000 due on the first anniversary of completion and up to £400,000 die on the 18-month anniversary.

Phil Flood, chief commercial officer at Inforalgo, said: “Financial markets are experiencing increasing levels of regulatory reporting, as well as demands to increase the speed of reporting.

“Joining with Gresham will enable us to take our innovative real-time regulatory reporting offerings to a global market and enable our customers to access the full power of the Clareti platform to provide confidence in their data.”

Ian Manocha, chief executive of Gresham, added: “It strengthens our capability to offer end-to-end control of regulatory reporting for our customers, enhances our US footprint and creates cross and upselling opportunities, and builds our recurring revenue base.

“I take the opportunity to extend a very warm welcome to the Inforalgo team and customers, and we look forward to building together on their successes in the market.”