SQS Software Quality Systems AG Regulatory News (SQS)

31 Dec 2008 07:00

SQS Software Quality Systems AG

31 December 2008

SQS Software Quality Systems AG ("SQS" or the 'Company')

Issue of Equity

SQS, the global leader in independent software testing and quality management services, is pleased to announce that Triton Unternehmensberatung GmbH ("Triton"), the Austrian company specialising in IT consultancy to the insurance industry that it acquired in August 2007, has exceeded its first earn out target. As a result, the Company has issued 965,964 new SQS ordinary €1 shares (the "New Ordinary Shares") to the three vendors of Triton pursuant to the acquisition agreement. 

Triton Unternehmensberatung GmbH was also renamed SQS Group Management Consulting GmbH during 2008.

The Company announced the acquisition of Triton on 20 August 2007 for a consideration of up to €15.5 million. Initial consideration of €4.4 million was paid in cash on completion with additional consideration of up to €11.1 million becoming payable in a combination of cash and new SQS shares (total consideration split 49% cash / 51% shares) subject to the achievement of specific earn out targets. The New Ordinary Shares relate to the equity portion of the first tranche of the earn out consideration. The vendors have also received €1.251 million in cash.

The New Ordinary Shares are subject to lock-in provisions for six months from 29 December 2008 with the exception of, in aggregate, 100,000 New Ordinary Shares which the Triton vendors may sell within this six month period, subject to the consent of SQS and its advisors. 

Application has been made for the New Ordinary Shares to be admitted to trading on AIM ("Admission") and dealings are expected to commence on 6 January 2009. 

Following Admission, SQS will have 26,185,075 Ordinary Shares in issue. 

For further information please contact:

31 December 2008