30th Apr 2015 08:13
LONDON (Alliance News) - SQS Software Quality Systems AG Thursday said it has agreed to buy US-based IT consultancy Trissential LLC for up to USD30.7 million, funded through cash, a new credit facility and shares.
Trissential posted a pretax profit of USD1.6 million for 2014, on revenue of USD32.3 million.
SQS will pay an initial consideration of USD17.7 million, including cash of USD11 million from its cash and a new credit facility, and USD6.7 million through the issue of 737,804 shares.
A further USD3 million will be payable in shares between a year and a half to two years from the completion of the acquisition, and an earn-out consideration of up to USD10 million will be paid at a ratio of 55% cash to 45% shares based on performance targets over the next three years.
SQS said it expects the acquisition to complete in June, saying the acquisition will quadruple its existing onsite delivery capability in the US and add exposure in the Mid-West region. The acquisition is expected to add "materially" to its US revenue in the current year.
"We are delighted to welcome Trissential to the SQS group; it strengthens our existing foothold and capability in the United States and immediately significantly enhances our scale in North America, a key stated strategic objective for this year," said Chief Executive Officer Diederik Vos in a statement.
Shares in SQS are trading up 3.4% at 633.50 pence Thursday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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