Regulatory
Announcement
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RNS Number:6287F
SQS Software Quality Systems AG
04 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 Group Limited.
As outlined in the Acquisition of Cresta announcement, the necessary registrations required in Germany to increase the share capital of SQS have been successfully completed. As such, application for admission to AIM of 1,427,743 New Ordinary Shares (being the number of New Ordinary Shares required to be issued to former Cresta Group shareholders pursuant to the terms of the acquisition) will be made and dealings in the new shares are expected to commence at 8:00am (London time) on 10 July.
SQS's strategic objective is to consolidate its position as the largest independent provider of software testing and quality management services in Europe. The acquisition of Cresta has created new opportunities for SQS in the UK and Ireland, both by increasing its customer base and extending its reach into 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 branded SQS-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.com | |
| Rudolf van Megen (CEO)/Rene Gawron (CFO) | +49 (2203) 91 54 0 | |
| Evolution Securities Limited | 020 7071 4300 | |
| Jeremy Ellis/Mike Read | ||
| Smithfield | 020 7360 4900 | |
| Sara Musgrave/Tania Wild |
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Notes to Editors
SQS is the leading independent pan-European provider of quality management and testing 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 a minor 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. The acquisition increased SQS's UK revenue three fold and secured SQS's position as the largest independent software testing and quality management company in the UK. The acquisition is expected to be earnings enhancing in the current financial year.
With over 3,000 completed projects under its belt, SQS has a strong customer base including half of the DAX 30 companies and 30% of the STOXX-50. They include 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 its IPO on 20 September 2005 raising £10.8m before expenses at an issue price of 190p. SQS is included in the Software and Computer Services sector (9530) within the Computer Services subsector (9533) and has a RIC code of SQS.L. SQS completed a secondary listing on the Deutsche Boerse in Frankfurt on 2nd December 2005. For further information, please visit www.sqs-uk.com.
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