Dundee tech firm braced for ‘new wave’ of AI after taking over Bafta-winning Glasgow peer

Scottish tech services company Waracle has sealed a takeover deal that will see its headcount push above 200 people.

Dundee-headquartered Waracle, which has expertise in mobile app, digital product development and artificial intelligence (AI), is acquiring Screenmedia, the Glasgow-based design and software engineering agency, on undisclosed terms. The deal pairs the 145-strong team at Waracle with Screenmedia’s 60 staff to take the combined workforce to more than 200 people.

Bosses at Waracle, which has offices in Dundee, Edinburgh, Glasgow and London, said the business was making a “strategic move” to bolster its digital product development and AI offerings.

Kenny Shaw of Screenmedia with Chris Martin of Waracle.

Waracle chief executive Chris Martin will take the same role at the new combined operation while Kenny Shaw will step back from day-to-day operations as Screenmedia becomes part of Waracle. Martin said: “We are ready for the new wave of AI-enhanced, intelligent customer experiences. This is a strategic business decision to continue our growth. We reviewed what we needed to succeed going forward and this acquisition was a key part of the answer.”

Waracle, which is backed by growth capital investor BGF, has a client base that includes Lloyds Banking Group, Royal London, ScottishPower, Roche and Imperial College London. The acquisition will allow Waracle to branch into new sectors, adding transportation, retail and the third sector to its primary industries of health, energy and financial services.

Screenmedia has a successful track record in crafting user experiences across web and mobile, working with the likes of spirits giant Edrington, the BBC, the NHS, Channel 4, Next and Honeywell. It also has a Bafta on its boardroom shelf for Best Interactive Media.

Shaw said: “Waracle has an impressive track record across regulated industries and our team at Screenmedia have a broad cross-section of sector experience. I think our new, combined organisation will make us a formidable force in Scotland’s technology consultancy space.”

Martin said further organic growth alongside strategic acquisitions would ensure that Waracle, which over 16 years has grown from an Abertay University spin-out to generate revenues of £20 million, was able to stay ahead of the demands of its clients.