SQS Software Quality Systems AG Regulatory News (SQS)

4 Jul 2006 11:15

SQS Software Quality Systems AG04 July 2006 Tuesday, 4 July 2006 SQS Software Quality Systems AG Completion of Acquisition of Cresta Group Limited Further to the announcement on 10 May 2006, SQS Software Quality Systems AG(AIM:SQS.L) the AIM listed supplier of independent software management services,is today pleased to announce the completion of the acquisition of Cresta GroupLimited. As outlined in the Acquisition of Cresta announcement, the necessaryregistrations required in Germany to increase the share capital of SQS have beensuccessfully completed. As such, application for admission to AIM of 1,427,743New Ordinary Shares (being the number of New Ordinary Shares required to beissued to former Cresta Group shareholders pursuant to the terms of theacquisition) will be made and dealings in the new shares are expected tocommence at 8:00am (London time) on 10 July. SQS's strategic objective is to consolidate its position as the largestindependent provider of software testing and quality management services inEurope. The acquisition of Cresta has created new opportunities for SQS in theUK and Ireland, both by increasing its customer base and extending its reachinto new vertical markets. Cresta has 30 concurrent customers at any one time,including five of the top ten FTSE 100 companies spread across the banking,telecoms, e-commerce and energy sectors. The UK business, now brandedSQS-Cresta, is three times bigger than SQS's former UK operation. Rudolf van Megen, Chief Executive Officer of SQS, commenting on the acquisition, said: "I am delighted to confirm the completion of this acquisition as it secures SQS's position as the largest independent software testing and quality management company in the UK, Ireland and continental Europe. We look forward to integrating the two businesses and exploiting the market opportunities that are now available to SQS." For further information please contact: SQS Software Quality Systems AG www.sqs.de or www.sqs-uk.comRudolf van Megen (CEO)/Rene Gawron (CFO) +49 (2203) 91 54 0Evolution Securities Limited 020 7071 4300Jeremy Ellis/Mike ReadSmithfield 020 7360 4900Sara Musgrave/Tania Wild Print resolution images are available for the media to view and download from www.vismedia.co.uk Notes to EditorsSQS is the leading independent pan-European provider of quality management andtesting services for software development. Headquartered in Cologne, Germany,SQS has over 700 employees with operations across the world including UK,Netherlands, Switzerland, Austria, Ireland and South Africa. SQS also has aminor stake in an operation in Portugal and a partnership operation in Spain.In May 2006, SQS made its first acquisition since joining AIM in September 2005,buying Cresta Group Ltd in the UK for a consideration of up to £18m. Theacquisition increased SQS's UK revenue three fold and secured SQS's position asthe largest independent software testing and quality management company in theUK. The acquisition is expected to be earnings enhancing in the currentfinancial year. With over 3,000 completed projects under its belt, SQS has a strong customerbase including half of the DAX 30 companies and 30% of the STOXX-50. Theyinclude names like Dresdner Bank, Lloyds TSB, Deutsche Telekom, Vodafone,Daimler Chrysler, and Airbus spread across the full range of industries.SQS is the first German company to have a primary listing on AIM, completing itsIPO on 20 September 2005 raising £10.8m before expenses at an issue price of190p. SQS is included in the Software and Computer Services sector (9530) withinthe Computer Services subsector (9533) and has a RIC code of SQS.L. SQScompleted a secondary listing on the Deutsche Boerse in Frankfurt on 2ndDecember 2005. For further information, please visit www.sqs-uk.com. This information is provided by RNS The company news service from the London Stock Exchange