Regulatory Announcement
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SQS Software Quality Systems AG ("SQS" or the 'Company')
Issue of Equity
Software Quality Systems AG, the global leader in independent software testing and quality management services, is pleased to announce that Cresta Group Limited ("Cresta"), the UK software testing company that it acquired in May 2006, has exceeded its first earn out target and therefore the Company is issuing 2,855,486 new shares pursuant to the acquisition agreement.
The Company announced the acquisition of Cresta on 10 May 2006 for a consideration of up to £18 million. An initial consideration of £6 million was paid on completion with the remainder subject to specific earn out targets. The current issue relates to the first tranche of the earn out consideration and is in accordance with the acquisition agreement. The remainder of the earn out is expected to be issued in September 2008. These shares, which are predominantly being issued to existing SQS employees, will be subject to lock-in provisions, the terms of which are that one quarter of the shares are released from lock-in restrictions every six months. The first release date is 21 March 2008 but the Company reserves the right to waive the lock-in provisions to satisfy market demand for SQS shares.
Application will be made for the new Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 28 September 2007.
Following admission of the issue, SQS will have 21,546,309 Ordinary Shares in issue.
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 50
Altium 020 7484 4040
Nick Tulloch
College Hill 020 7457 2020
Sara Musgrave/Ben Way
This information is provided by RNS
The company news service from the London Stock Exchange
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