10th May 2019 10:08
LONDON (Alliance News) - Tribal Group PLC on Friday said it has acquired student management software solutions developer Crimson Consultants Holdings Ltd for GBP10 million.
The company hopes the Crimson acquisition to provide additional functionality to Tribal Edge, the company's cloud-based student information system.
Tribal, which provides software services to the education market, will pay an initial consideration of GBP6 million for Crimson and a further GBP4 million based on Crimson meeting annual recurring revenue targets. The deal is being financed through existing cash of Tribal.
"Crimson brings with it a broad existing customer base and strong relationships with universities and Further Education colleges, presenting compelling new cross-selling opportunities," Tribal said.
The deal is expected to be earnings accretive in the medium term as Tribal is reinvesting in Crimson to drive increased revenue. For the year ended December 31, Crimson recorded revenue of GBP3.0 million and adjusted operating profit of GBP600,000.
Shares in Tribal were up 2.1% higher at 72.50 pence each on Friday morning.
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