The IXUP Ltd (ASX: IXU) share price is gaining in late morning trade. Shares are up 3% at the time of writing after earlier posting intraday gains of more than 11%.
IXUP develops software to help securely share and analyse data using encryption technology.
Below we look at the latest acquisition announcement from the ASX technology share.
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What acquisition did IXUP report?
IXUP's share price is moving higher after the company announced it has entered into a binding agreement to acquire Data Republic's entire intellectual property and associated technology product portfolio.
Administrators for Data Republic commenced the rapid sales process for the Data Republic Technology Assets in mid-May.
IXUP has agreed to pay $3 million, less agreed deductions, for the entire portfolio. It says the purchase price represents a 94% discount to the roughly $50 million that Data Republic spent to develop and deploy its Data Republic Technology Assets.
Commenting on the agreement, Marcus Gracey, IXUP's CEO said:
Due to Data Republic being a market competitor to IXUP, we have followed Data Republic's evolution closely for many years. While it is unfortunate that the Data Republic business was not able to achieve the necessary scale required to continue in its previous form and we empathise with the affected employees and customers of their business, we believe that with a new and reinvigorated commercialisation strategy and in combination with IXUP's aggressive growth plan, the Data Republic Technology Assets will demonstrate significant value…
[W]e are confident that we will generate significant commercial returns from this modest investment and breathe significant life back into the Data Republic Technology Assets to fulfill their full potential.
Gracey added that, where possible, IXUP intends to continue to deliver services to all of Data Republic's customers.
The company said it has identified "significant potential product and commercial synergies" from the acquisition.
IXUP share price snapshot
Over the past 12 months, IXUP shares have gained a whopping 1,600%. That blows the doors off the 20% gains posted by the All Ordinaries Index (ASX: XAO).
Year-to-date the IXUP share price has continued to outperform, up 113% so far in 2021.
