Waracle, the Scottish technology services company, has agreed a deal to acquire Screenmedia, the Glasgow-based design and software engineering agency, in a move to further develop its digital product development capability.

The acquisition pairs the 145-person team at Waracle—with expertise in mobile app, digital product development, and AI—with Screenmedia’s team of 60 to take Waracle to over 200 employees.

Waracle, which has offices in Edinburgh, Glasgow, Dundee, and London, is making the strategic move to bolster its digital product development and AI offerings, as the market evolves and the technology services industry focuses on AI and its impact on software development.

“We are ready for the new wave of AI-enhanced, intelligent customer experiences,” said Waracle CEO Chris Martin. “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.”

Martin will be CEO of the new combined operation while Kenny Shaw will step back from day-to-day operations as Screenmedia becomes part of Waracle.

Screenmedia has worked with the likes of the BBC, NHS, and Next, and won a Bafta for Best Interactive Media; Waracle’s client base includes Lloyds Banking Group, Royal London, ScottishPower, and more.

The acquisition, which was made for an undisclosed sum, allows Waracle to branch into new sectors, adding retail, transportation, and third sector to their primary industries of health, energy, and financial services.

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“This is the first step in our ambitious plans to grow by acquiring design and technology services agencies with complementary skillsets,” Martin said.

“We want to continue to employ talented technologists to solve our clients’ digital problems and be able to service changing client needs across the UK by covering a wider range of technologies like service design, artificial intelligence and sensors.”

Shaw also commented: “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