EG takeover sets good example
Who?
Listed Staffordshire computer software firm EG Solutions.
Did what?
Has bought Bristol’s XTAQ, a developer and supplier of business performance measurement software and associated services, for a consideration close to £250,000.
What does this mean?
In the year to 31 March 2009, XTAQ’s audited turnover was £550,000, on which it incurred a loss before tax of £150,000. EG suggests that the acquisition of XTAQ brings together two companies with complementary products and customer bases. Elizabeth Gooch, chief executive officer of EG, said: “We believe that the acquisition of XTAQ is an excellent ‘bolt on’. It strengthens our position in the back office optimisation market, extends our product range, expands our customer base and adds to our recurring revenues.”
Insider comment:
Some £33,333 of the consideration will be paid in chas, and the balance by the issue of up to £150,000 in 5 per cent convertible unsecured loan notes and up to 90,100 new ordinary shares of 1p.
XTAQ was founded in 1993 and employs eight people. Customers of its Nuqleus business performance measurement software product include Aegon, Barclaycard, GE Capital and Citibank.
