A DATA monitoring company has moved “to the next level” after completing a £4.25m deal.

Vianet Group has bought Vendman Systems.

Bosses at Stockton-based Vianet say the agreement for Vendman, known for software used to oversee retailers’ stock control, pricing, data management and account analysis, will help accelerate the former’s roll-out of contactless payment technology.

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Vianet provides apparatus giving companies greater insight into machines and their need for maintenance, and has a long-term agreement with premium coffee firm Jacobs Douwe Egberts.

It is also known for iDraught, which seeks to slash pub waste by providing landlords with precise alcohol readings.

However, James Dickson, chairman, said Cheshire-based Vendman will help Vianet’s Smart Machines arm, which allows purveyors of apparatus, such as vending machines, to stay up-to-date with the performance of equipment.

He also said it will bolster Vianet’s ongoing focus on the Internet of Things, which connects devices in everyday objects by allowing data to be sent and received.

“This is an important acquisition, which greatly advances our strategy for growth and is a hugely complementary fit for our business on several fronts and takes it to the next level”, he said.

“The fact that Vendman has chosen to deal with us is a strong endorsement of our capability, vision and strategy for Smart Machines.

“As businesses increasingly seek and rely on actionable data, business intelligence and insights, Vianet's expansion of proven Internet of Things capability shows we are well placed to deliver compelling results for our customers and accelerate our own growth in what are rapidly evolving markets.”

Vendman provides management services for more than 200,000 machines in the UK and Europe, with latest unaudited accounts for the year to March 31 showing revenues of £1.8m and an operating profit of £270,000.

The terms of Vianet’s deal includes an initial cash consideration of £2m, with an earn-out element of up to £2.25m based on the achievement of earnings before interest and tax targets in the first two years.

Stewart Darling, Vianet chief executive, added: “We are delighted to announce this significant acquisition and we look forward to accelerating business growth with the highly experienced and respected Vendman team.

“The combination of Vendman’s mobile software products with Vianet Internet of Things connectivity, data analytics and contactless payment solutions creates an unparalleled portfolio with strong presence in the UK and Europe.

“It is positive news for both sets of customers and accelerates our pan-European growth plans.”