Grafenia has acquired another specialist software company from a completely different sector.

The group has acquired Topfloor Systems in a deal worth up to €6.2m (£5.5m).

Dublin-based Topfloor develops property management software used by owners, landlords and managing agents. It has customers in the UK and Ireland.

The deal involves an earn-out. The initial consideration was €3.84m, with €960k deferred until the first anniversary of completion. A further €1.4m will be payable if the business meets certain financial performance targets.

Founding shareholder George Murphy is leaving, while CEO Niall Wrafter and CTO Cathal Browne, both also shareholders of Topfloor, will remain with the business which has a team of eight.

Topfloor had sales of €1.59m and made EBIT of around €370k in the financial year to 31 August 2022, however, Grafenia said the management changes will reduce operating costs and immediately increase profitability.

Grafenia acting CEO Gavin Cockerill said: “We're delighted to announce our fourth acquisition of the financial year, adding Topfloor to the growing stable of vertical market software businesses in Grafenia's portfolio.”

He said Topfloor was a great example of the kind of business Grafenia’s Software Circle team are searching for.

“We have been very impressed with Niall and Cathal from the outset and are excited to work with them and the Topfloor team in the years ahead.”

Last month Grafenia issued more bonds to fund its M&A drive.