20th Aug 2007 07:01
SQS Software Quality Systems AG20 August 2007 20 August 2007 SQS Software Quality Systems AG ("SQS" or "the Company") Acquisition of Triton SQS Software Quality Systems AG (AIM: SQS), the world's largest pure-playprovider of independent software testing and quality management services, ispleased to announce the acquisition of Triton Unternehmensberatung, a privateAustrian company specialising in IT consultancy services to the insuranceindustry, for a total maximum consideration of €15.5 million. Trading since 1997, Triton provides IT consultancy services to insurancecompanies improving the automation of their back office processes. Workingwithin Germany, Austria and Switzerland, Triton's specialist independentconsultants help insurance companies to define the claims and policy processingrequirements of their back office processes and then best employ the leadingcommercial software solutions on the market to maximise processing efficiency.Triton is a vendor agnostic IT business consultancy - it does not produce itsown software. The acquisition of Triton immediately enhances the 'Management Consulting'practice launched by SQS last year. The Management Consulting practice expandsthe Company's traditional quality management and software testing offering intoadditional IT project management and consulting services, mainly helpingbusiness departments to improve the success rate of their IT projects. Theacquisition also provides SQS with valuable cross selling opportunities into itssoftware testing division. In the year to 31 December 2006, Triton made an adjusted profit before tax of€1.4 million on turnover of €4.8 million, representing a net margin of 29%. Thevalue of the net operating assets to be acquired is approximately €0.5 million.Triton has approximately 35 permanent employees, is based in Vienna, Austria andhas one of the world's leading insurance companies, headquartered in Germany, asits predominant client. The acquisition comprises an initial consideration of €4.4 million in cash, anddeferred consideration of up to €11.1 million in total, to be paid in acombination of cash and shares (49% cash/51% stock). The deferred considerationis subject to Triton meeting specific earnout targets over the next two years,including profit after tax and revenue with additional customers. Triton hascommitted to an aggressive growth forecast in order to achieve the earnouttargets. In addition, there is a provision for the sellers to agree, at theirdiscretion, to a third year earnout with higher targets. During the earnout period, Triton will stand as a separate business, retainingthe Triton name. Its three founders will continue to run the business. The acquisition is expected to be immediately earnings enhancing. Rudolf van Megen, Chief Executive of SQS commented: 'Triton is a highly profitable IT business consultancy that will enhance thenewly launched Management Consulting practice of SQS, mainly helping businessdepartments to improve the success rates of their IT projects. The acquisitionalso supports the Company's strategy of strengthening its position in a numberof key European markets through acquisition and organic growth.' Notes to editors SQS is the world's largest independent provider of software testing and qualitymanagement services. SQS consultants design and oversee quality managementprocesses during software and IT systems development, and test the resultingproducts for errors and omissions. Headquartered in Cologne, Germany, SQS now has 860 employees across Europe andin South Africa. The Group has a strong presence in Germany (Cologne, Munich,Frankfurt, Stuttgart and Hamburg) and in the UK (London, Woking, Birmingham,Manchester, Belfast), Ireland, Netherlands, Switzerland, Austria and SouthAfrica. SQS also has a minor stake in an operation in Portugal and a partnershipoperation in Spain. With more than 4,000 completed projects under its belt, SQS has a strongcustomer base including 36 FTSE-100 companies, half of the DAX 30 and nearly athird of the STOXX-50. It supports clients in a wide range of industries,including major corporations such as Lloyds TSB, Deutsche Telekom, Barclays, BP,Credit Suisse, Volkswagen, and Airbus. For further information please contact: SQS Software Quality Systems AG +49 22 03 91 54 0Rudolf van Megen, CEORene Gawron, CFO Altium +44 (0)20 7484 4040Nick Tulloch College Hill Associates Ltd +44 (0) 20 7457 2020Sara MusgraveCarl FranklinBen Way This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SQS Software Quality Systems AG