SQS Software Quality Systems AG Acquisition of Remaining Shares (6636X)
May 09 2016 - 6:58AM
UK Regulatory
TIDMSQS
RNS Number : 6636X
SQS Software Quality Systems AG
09 May 2016
9 May 2016
SQS Software Quality Systems AG
("SQS", the "Company" or the "Group")
Acquisition of Remaining Shares of SQS India Infosystems Private
Limited ("SQS-India")
SQS Software Quality Systems AG (AIM: SQS.L), the world's
largest specialist supplier of software quality services, announces
that it has on 9 May 2016 agreed to acquire the remaining 25% of
the issued share capital of SQS India Infosystems (the "Remaining
Shares"), subject to statutory Indian approvals. SQS announced the
acquisition of 75% of the issued share capital of SQS-India,
formerly named Verisoft Infosystems Private Limited, on 16 June
2008 (the "Acquisition"). It is consolidated into the Group's
results and is SQS' subsidiary in Pune, India.
The Acquisition was effected by a sale & purchase agreement
(the "SPA") which provided an option, exercisable by either SQS or
the vendors, for SQS to acquire the Remaining Shares for a
consideration determined by SQS-India's profit after tax and SQS'
price/earnings ratio. The Remaining Shares are to be acquired,
following the exercise by SQS of its option under the terms of the
SPA, from Gireendra Kasmalkar and his wife, Snigdha Kasmalkar, from
whom the initial 75% of the issued share capital was acquired. The
consideration for the Remaining Shares is INR 785 million
(approximately EUR10.5 million), paid in cash. In the year ended 31
December 2015 SQS-India made profits after tax of approximately
EUR3.1 million. Following the completion of the acquisition of the
Remaining Shares SQS will own the entire issued share capital of
SQS-India.
The acquisition of the Remaining Shares falls to be treated as a
related party transaction under the AIM Rules by virtue of the fact
that Gireendra Kasmalkar continued as managing director of
SQS-India until 31 March 2016, following which date he has
continued as a non-executive director. SQS' directors consider,
having consulted with its nominated adviser, Numis Securities, that
the terms of the transaction are fair and reasonable insofar as its
shareholders are concerned.
Diederik Vos, CEO, commented:
"SQS has invested considerably in India over the past decade to
ensure the Company can meet the growing service demands of our
global clients, while seeking to drive more efficiency and output
from our employee base. Therefore, today's announcement is in line
with that stated strategy."
Ends
Enquiries:
SQS Software Quality Systems AG Tel. +49 (0) 2203 91
54 0
Diederik Vos, Chief Executive Officer
Rene Gawron, Chief Financial Officer
Numis Securities - Nomad and Joint Broker Tel +44 (0) 20 7260
1000
Simon Willis / Jamie Lillywhite / Mark Lander
Stockdale Securities - Joint Broker Tel. +44 (0) 20 7601
6100
Robert Finlay / Antonio Bossi
FTI Consulting - Financial Media and Investor Tel. +44 (0)20 3727
Relations 1000
Matt Dixon / Dwight Burden sqs@fticonsulting.com
About SQS
SQS is the world's leading specialist in software quality
services. This position stems from over 30 years of successful
consultancy operations. SQS consultants provide solutions for all
aspects of quality throughout the whole software product lifecycle
driven by a standardised methodology, offshore automation processes
and deep domain knowledge in various industries. Headquartered in
Cologne, Germany, the company now employs approximately 4,600
staff. SQS has offices in Germany, UK, US, Australia, Austria,
Egypt, Finland, France, India, Ireland, Italy, Malaysia, the
Netherlands, Norway, Singapore, South Africa, Sweden, Switzerland
and UAE. In addition, SQS maintains a minority stake in a company
in Portugal. In 2015, SQS has generated revenues of EUR320.7
million.
SQS is the first German company to have a primary listing on
AIM, a market operated by the London Stock Exchange. In addition,
SQS shares are also traded on the German Stock Exchange in
Frankfurt am Main.
With over 10,000 completed projects under its belt, SQS has a
strong client base, including half of the DAX 30, nearly a third of
the STOXX 50 and 20 per cent of the FTSE 100 companies. These
include, among others, Allianz, BP, Commerzbank, Daimler, Deutsche
Post, Generali, Meteor, UBS and Volkswagen as well as other
companies from the six key industries on which SQS is focused.
For more information, see www.sqs.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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