The IPH Ltd (ASX: IPH) share price is climbing today following an acquisition update by the intellectual property services provider.
During late morning trade, IPH shares are fetching for $8.03, up 2.95%. In comparison, the All Ordinaries Index (ASX: XAO) is flat at 7,587 points for the day.
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Acquisition update
Investors are snapping up IPH shares after the company announced it has expanded its digital and trade mark capability.
According to its release, IPH advised it will acquire leading Australian online automated trade mark application platform, Applied Marks.
Under the transaction, IPH will pay upfront cash consideration of $5 million for Applied Marks. In addition, up to $2.1 million will be payable from two years after the completed transaction. This is based on Applied Marks achieving set out minimum performance targets.
The newly added company will continue to operate existing platforms, but also extend into other areas of revenue growth. The resources and technology acquired from the deal are expected to contribute to a new Digital Services function within the group.
IPH CEO, Dr Andrew Blattman commented:
The acquisition of Applied Marks accelerates our digital capability while allowing us to address an expanded market. It bolsters our ability to participate in the online automated IP services space, and will support us to evolve our traditional trade mark offering in line with the changing market.
Over time we expect to harness this digital expertise in related areas of IP and use those tools to support a more seamless interaction amongst providers, clients and regulatory authorities to generate further efficiencies for our teams and our clients across the regions in which we operate.
IPH share price summary
In 2021, IPH shares gained around to 25%, and around 8% over the past year. The company's share price has noticeably trekked higher since the start of June, up 16% for the month.
IPH presides a market capitalisation of roughly $1.7 billion, with more than 217 million shares on its books.
