LONDON (Alliance News) - Xchanging PLC Friday said it has agreed to acquire spend-analytics company Spikes Cavell Analytic Ltd in a deal that could cost up to USD11.5 million on a cash-free, debt-free basis.
The acquisition, which remain subject to what Xchanging called "customary closing conditions", is expected to complete by the end of March this year. Xchanging will pay USD6.75 million on completion of the acquisition and up to an additional USD4.75 million over the next two years depending on operating performance targets that were not specified in its statement.
According to Spikes Cavell's website, it provides "management information and business intelligence" that aid "spend visibility" for government bodies, educational institutions and large corporations on both sides of the Atlantic.
Based in Newbury in the UK and the US state of Virginia and with 35 employees, Spikes Cavell will bring with it a portfolio of about 60 existing lead customers, according to Xchanging. Some of these customers represent groups.
Spikes Cavell reported GBP1.8 million in revenue for the year ended March 31, 2014, Xchanging said.
"Increasingly organisations are recognising the major savings that can be made by using technology to enhance their procurement strategies. Our procurement business went through a significant transformation in 2014, building on the impetus of the MM4 acquisition, made in late 2013, which brought a core technology platform," Xchanging Chief Executive Ken Lever said.
"It also opened up the business to accelerated client acquisition by increasing the number of lower price point offerings. SCAL contributes to this strategy and further enhances our technology capabilities," Lever added.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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