Why the ELMO Software (ASX:ELO) share price surged 11% higher today

The ELMO Software Ltd (ASX: ELO) share price has been a very strong performer on Thursday.

In afternoon trade the cloud-based HR and Payroll software provider’s shares are up over 11% to $6.53.

Why is the ELMO share price surging higher?

Investors have been buying ELMO’s shares today after it announced another bolt-on acquisition.

According to the release, the company has agreed an initial payment of 20 million pounds (A$35.3 million) to acquire UK-based Webexpenses.

This consideration comprises a combination of cash (51%) and scrip (49%). The deal also comes with an earnout consideration of ~13 million pounds (A$23 million), which is payable in the same balance of cash and scrip, and is subject to the achievement of…