Made Tech Group (AIM:MTEC) has acquired the entire issued share capital of Target Applications, the Glasgow-based housing technology provider trading as CX Feedback, in a deal worth up to £6m.
The AIM-listed group, which provides digital, data and technology services to the UK public sector, paid £3m in cash on completion, subject to working capital adjustments, with a further £3m payable in cash two years out if CX Feedback achieves annual recurring revenue (ARR) growth of up to 150% over that period.
The acquisition is fully funded from Made Tech's existing cash reserves and is expected to be earnings-enhancing on an adjusted basis in the financial year to 31 May 2027.
CX Feedback serves more than 100 customers across social housing and local government, helping providers collect tenant feedback, manage complaints and cases, and automate related workflows and reporting across Scotland, England and Wales.
The business generated revenue of £1.45m in the year to 31 December 2025, up from £1.17m in 2024, with profit before tax rising to £0.49m from £0.36m. ARR stood at £1.05m as at 27 October, and the business runs on typically annually renewed contracts with low customer churn.
The deal gives Made Tech its first office in Scotland, a base the company says will support its pursuit of public sector contracts north of the border.
Johnathan Briggs, CX Feedback founder and sole shareholder, is selling the business and will remain to lead its continued growth.
"CX Feedback has many of the qualities we are looking for in an acquisition: a profitable, growing public sector business with recurring revenue and strong customer relationships," said Rory MacDonald, chief executive of Made Tech, calling it the company's first acquisition using its balance sheet to accelerate growth.
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The deal lands weeks after Made Tech reported revenue up 27% to £58.9m and adjusted EBITDA up 69% to £5.9m for the year to 31 May, alongside net cash of £14.5m and a debt-free balance sheet, the funding base now backing the CX Feedback purchase.
It also follows recent momentum, including the largest award in the company's history announced in August, part of a consortium deal worth approximately £40m over four years, which lifted Made Tech's contracted backlog to roughly £115m and prompted an FY27 guidance upgrade to £63m-£66m revenue and £6.3m-£6.6m adjusted EBITDA.