TPG.L Share News (TPG)

(Sharecast News) - Specialist services and engineering company TP Group announced the acquisition of the entire issued share capital of Sapienza Consulting Holding on Wednesday, for an initial cash consideration of €10m and €1.5m by way of the issue of 20,612,865 new ordinary shares.The AIM-traded firm said an additional maximum of €2m could also be payable in cash on delivery by the vendors of certain transition activities, within two years following completion.Its board said it expected that the acquisition of Sapienza would be earnings accretive for the year ending 31 December, and "significantly" earnings accretive in the following year.The cash element of the consideration was being funded from existing cash resources.TP Group said the deal would be completed on a debt-free, cash-free, normalised working capital basis, with a two-year lock-in on the consideration shares.It said the acquisition would extend its capabilities in the space industry, describing Sapienza as a "complementary" business delivering "highly complex" solutions and skillset to the space and defence markets.The group, as enlarged by the acquisition, would have a pan-European presence and extended customer base, giving it "significant" cross-selling opportunities across its blue-chip customer base.In the financial year ended 31 December, Sapienza reported unaudited consolidated revenues of €18.9m and profit before tax of €0.7m.As at the same date, Sapienza had unaudited consolidated gross assets of €9.2m.Andrea Bennetti, Mike Bearman and Tarik Larfaoui - all directors and the majority shareholders of Sapienza - would remain with the business and continue to lead Sapienza's activities and operations."We are delighted to welcome Sapienza into the group, bringing highly complementary skills, technologies and customers across both the defence and space sectors," said TP Group chief executive Phil Cartmell."Several of the existing group leadership team have experience in the space sector and we see significant opportunities to leverage the skills and technologies of both Sapienza and TP Group across the enlarged global footprint."We are equally excited to see the continued development of new technologies from the team at Sapienza."Cartmell said it was "pleasing" that Bennetti, Bearman and Larfaoui would continue to work with TP Group post-acquisition, to continue managing and growing the business, including the delivery of several technology projects that would build the future propositions of the larger company."We believe this acquisition enhances our unique business by further augmenting our ability to deliver services and skills into highly complex and critical environments."The combination of the two businesses presents a compelling opportunity for future success."As at 1004 BST, shares in TP Group were up 8.98% at 7.03p.