Advanced Computer Software Group plc Acquires Education Software Provider Compass Computer Consultants for £15m
Advanced Computer Software Group plc (AIM: "ASW", "Advanced", or "the Group"), a leading provider of healthcare and business management software and services, has acquired Compass Computer Consultants Limited ("Compass"), one of the UK's leading market higher education software providers, for a total cash consideration of £14.5m net of £2.6m of cash and a freehold property left in the business.
Compass, based near Chester, provides business solutions for the education sector, including record management and customer relationship ("CRM") software, training and support to more than 80% of UK colleges and higher education establishments.
The business will be integrated into the Group's Business Solutions division, which already has 2,000 local authorities, academies, independent schools and further education providers including 57 universities and colleges using its back office solutions.
Both Compass and Advanced supply public sector customers. The Group has 80 local authority customers creating significant opportunities for the cross-selling of products and services.
In the year ended 31 July 2013, Compass had revenue of £5.7m and generated £3.3m EBITDA. It is expected to be immediately earnings enhancing.
Vin Murria, Chief Executive, commented:
"This earnings enhancing acquisition is complementary to the Group's existing education sector offering. It provides us with greater critical mass and a broader product range for the growing education market in the UK.
"Significantly, in line with previous acquisitions, Compass has high levels of long term recurring revenue and offers considerable opportunity for cross-selling Group products and services."