SQS snaps up Swedish rival

Date: Wednesday 11 Jun 2008

Software testing company SQS Software Quality Systems has extended its presence in Scandinavia through the acquisition of a Swedish software testing and quality management company.

SQS will acquire at least 96% of the issued share capital of Validate Technology Svenska, a company headquartered in Kista, Sweden, with subsidiaries operating in Finland and Norway.

Validate has around 70 staff and 20 clients, including many blue-chip companies in the region.

In 2007 Validate made a pre-tax profit of €0.3m on revenues on €4.6m. This year it is expected to generate profit before tax of €0.8m on revenues of €8m.

The company had net assets of €0.4m at the end of last year.

The maximum purchase price of the acquisition will be €16.4m, with 25% of the consideration satisfied in cash with the rest through the issue of new SQS ordinary shares.

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