27th Aug 2015 08:45
LONDON (Alliance News) - SQS Software Quality Systems AG on Thursday said it has reached a conditional agreement to buy US-based software testing consultancy Galmont Consulting LLC for up to USD22.0 million in cash and shares.
Galmont has a leading position in the software testing consultancy market in the Midwest region of the US, and the deal will complement SQS's existing banking, financial services, insurance and manufacturing sector operations.
The acquisition also will boost and diversify SQS's revenue base by materially expanding its US business.
SQS will pay an initial USD3.5 million in cash and the same amount in shares for Galmont. The issue will comprise 375,134 shares in SQS priced at 598 pence per share. SQS shares were down 1.6% to 565.00 pence on Thursday.
The remaining consideration will be paid based on Galmont hitting earnings targets over the five years following completion, with the balance to be split equally between cash and shares.
"This is SQS's second acquisition in the US and follows the successful integration of US-based management consultancy business Trissential, announced in April. The acquisition of Galmont, which has built an outstanding and established reputation, significantly expands our presence in this large and growing market for us," said Diederik Vos, SQS's chief executive.
By Sam Unsted; [email protected]; @SamUAtAlliance
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