The transaction was structured as transfer of business and assets into a new company immediately acquired by Sopheon. The consideration comprises AUD $1m of which two thirds is payable immediately in cash, and the remainder over three years as contingent deferred consideration tied to baseline performance metrics. An additional contingent earn-out of up to a maximum of AUD $1.2m is also payable over the next three years, tied to revenue and EBIT growth objectives. Up to 50% of the deferred and earn-out consideration may be satisfied in Sopheon shares issued at £5.63 per share being the average closing price of the two weeks preceding the signature of the agreement. The cash consideration component of the acquisition is being funded out of existing and healthy cash resources. The share consideration elements will be subject to orderly market provisions.
Greg Coticchia, CEO of Sopheon, said: “This is Sopheon's third acquisition in 19 months and the latest evidence of the strong momentum that our company is experiencing. With companies throughout South-East Asia increasing their innovation investments, it's fitting that Sopheon's first acquisition to expand our geographic presence be in this expanding market. Prodex, a long-time reseller of Accolade, assists innovative and successful companies to make better, quicker decisions and increase speed to market. Sopheon’s innovation leadership continues to expand as a result of our consistent growth in product offerings, customer implementations and global reach.”
Prodex founder and CEO Gerard Ryan added: “The transition for Prodex to become a Sopheon entity is an exciting extension of the reseller agreement we have had in place for many years. We are already working with Sopheon in Australia, New Zealand, and Thailand with market development plans in place for the wider South-East Asian region. We’re excited by the synergy of immediate geographic expansion for Sopheon in this highly innovative and high-growth region, while also enabling true 24/7 coverage for Sopheon’s global customer base.”
For further information contact:
|Andy Michuda (Chairman)
Arif Karimjee (CFO)
|+ 44 (0) 1276 919 560
|Carl Holmes / Abigail Kelly / George Dollemore (Corporate Finance)
Alice Lane / Sunila de Silva (ECM)
|+ 44 (0) 20 7220 0500
Sopheon®, Accolade® and Acclaim™ are trademarks of Sopheon plc. All other trademarks are the property of their respective owners.
(LSE: SPE) empowers organizations to change the world while achieving exceptional long-term revenue growth and profitability. By operationalizing the entire innovation life cycle, Accolade® and Acclaim™ software and expertise enable innovation, product and project professionals to accomplish the full range of InnovationOps tasks to drive innovation at scale. Sopheon’s industry leadership was highlighted in the comprehensive MarketsandMarkets™ report on the Innovation Management market, in which Sopheon was listed in the “Stars” category, the highest recognition. Sopheon’s solutions have been implemented by hundreds of blue-chip customers with over 137,000 users in 50 countries. Sopheon is listed on the AIM Market of the London Stock Exchange. For more information.