Elixirr International boosts US presence with Hypothesis acquisition

(Alliance News) - Elixirr International PLC on Monday edged full-year sales guidance higher after securing another US deal.

The London-based business consultancy said US subsidiary Elixirr Inc is buying Hypothesis Group LLC for up to USD45.0 million.

Los Angeles-based Hypothesis is a insights and strategy firm founded in 2000.

In the financial year that ended in August, Hypothesis recorded normalised earnings before interest, tax, depreciation and amortisation of USD5.1 million and normalised pretax profit of USD5.0 million on revenue of USD28.1 million.

Elixirr said the deal, its sixth since its initial public offering in July 2020, and its fourth in the US, is immediately earnings-enhancing.

Hypothesis's strong US presence will add immediate scale as well as help accelerate growth in the region, Elixirr said in a statement.

Elixirr updated guidance for 2024 to reflect current expectations and around two months impact of the new acquisition.

The board expects 2024 revenue in the range of GBP108 million to GBP111 million. In September, the company said it expected full-year revenue of between GBP104 million and GBP110 million.

Previous adjusted Ebitda margin guidance of 27% to 29% is maintained, inclusive of the dilutive effect of Hypothesis's lower Ebitda margin at acquisition, the firm added.

In 2023, Elixirr reported revenue of GBP85.9 million and an adjusted Ebitda margin of 30%.

Shares in Elixirr were up 3.3% to 717.90 pence each in London on Monday morning.

By Jeremy Cutler, Alliance News reporter

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