Business
Acquisition
Acquisition.
About this update from Tribal Group Plc
[{"type":"text","content":"\n \nRNS Number : 5875Y Tribal Group PLC 10 May 2019 \n\nTribal Group plc\n \nAcquisition of Crimson Consultants\n \nStrategically important transaction; strengthens Tribal's technology portfolio\n \nTribal Group plc, (\"Tribal\", the \"Company\" or the \"Group\") a leading provider of software and services to the international education management market, has acquired Crimson Consultants Holdings Limited (\"Crimson\"), the UK's market-leading provider of customer relationship management ('CRM') based solutions to the education market, for a total initial consideration of £6m (\"the Acquisition\") with a further £4m contingent consideration based on meeting an annual recurring revenue target. The Acquisition will be financed through existing cash resources.\n \nTransaction summary\nTribal is pleased to announce this strategically important acquisition. A summary of the highlights includes:\n \n- Crimson's technology provides valuable, additional functionality to Tribal Edge, Tribal's cloud-based, next generation Student Information System (SIS). It will accelerate its speed to market and reduces Tribal's requirement to develop this functionality.\n- Crimson brings with it a broad existing customer base and strong relationships with universities and Further Education colleges, presenting compelling new cross-selling opportunities\n- The Acquisition will be earnings accretive in the medium term as Tribal is reinvesting in Crimson to drive increased revenue in markets in the near term.\n- For the year ended 31 December 2018, Crimson had revenues of £3.0m, operating profits (adjusted EBITDA) of £0.6m and net assets of approximately £0.3m \n- The contingent consideration is based on the Directors of Crimson meeting challenging Annual Recurring Revenue (\"ARR\") growth targets\n \nAcquisition rationale\nThe acquisition is in line with Tribal's strategy of underpinning student success through the provision of world class education software and services, and supports our key goals of:\n \n- delivering a cloud-based Student Information System (Tribal Edge);\n- incr...