K2fly buys data collaboration company

Subiaco-based software company K2fly has made its first acquisition since listing on the ASX last year, announcing today the purchase of a local specialist data collaboration company that counts the state's three biggest iron ore miners as its clients.

K2fly will pay $625,000 in cash and $275,000 in shares to wholly acquire Infoscope, which specialises in the connection of disparate data sources and assembling different information layers to present a single source of data in a clear format.

The target company’s products are available for use in the mining, energy, utilities, infrastructure and environmental sectors, with its client base including Fortescue Metals Group, BHP Billiton and Rio Tinto.

The acquisition represents an EBIT multiple of 1.56x.

“The Infoscope platform eliminates information silos, connecting disparate data sources, assembling the information layers to present a single source of data that is easily understood and provides greater transparency to the users of these different information layers,” K2fly chairman Brian Miller said.

"The acquisition of Infoscope provides K2fly with a significant entry into the mining industry, with Fortescue a key client of Infoscope."

K2fly began trading on the ASX in November last year, after acquiring Power Resources through a reverse takeover.

Shares in K2fly were 15.3 per cent higher to 9 cents each at the close of trade.