30th May 2019 11:35
LONDON (Alliance News) - Financial software firm KRM22 PLC said Thursday it acquired Dutch peer Object+ Holding BV for up to USD3.9 million in a cash and shares deal.
KRM22 will pay an initial USD500,000 in cash and USD650,000 through the issue of 606,909 KRM22 shares at 85 pence each.
Shares in KRM22 were 5.3% lower at 71.00 pence on Thursday, giving it a market capitalisation of GBP13.0 million.
A further USD2.8 million is payable in three tranches dependent on achieving growth targets in recurring revenue over the earn-out period. In total, the maximum consideration for the acquisition is USD3.9 million or GBP3.0 million.
Object+ currently generates annualised revenue of USD1.1 million and made a "small" loss the year.
"I am delighted to welcome the Object+ team to KRM22," KRM22 Chair & Chief Executive Officer Keith Todd said. "This acquisition will be a further strategic step towards the development of our Global Risk Platform, bringing strong post-trade execution and market gateway expertise which is complementary to our existing market risk offering."
"Our focus is to provide applications which help our customers reduce the cost and complexity of risk management at their firms and believe that this acquisition will help us to build even greater momentum in the market," Todd added.
After admission of the share element of the initial consideration - expected in early June - KRM22 will have 18.9 million shares in issue.
Related Shares:
Krm22 Plc