Tribal Group plc Acquires Sky Software Pty Ltd
Tribal Group plc ("Tribal"), a leading provider of technology-enabled management solutions to the international education, learning and training markets, is pleased to announce that it has acquired the entire issued share capital of Sky Software Pty Limited ("Sky Software").
Sky Software is a provider of cloud-based student management systems to the vocational and higher education markets in Australia, the Asia Pacific region and elsewhere in the world. Based in Geelong, near Melbourne, Australia, Sky Software's system complements Tribal's portfolio of education management systems, as it caters for smaller institutions, and offers strong operating synergies. The founding executive team will continue to lead the business as it moves forward with Tribal. Sky Software has a growing pipeline of new business opportunities, and as a result the transaction is expected to be earnings accretive in the year ended 31 December 2014.
Initial consideration for the entire issued share capital of Sky Software on a debt-free/cash-free basis will be A$4m, with up to a further A$17m payable in deferred contingent consideration, dependent on the future earnings growth of Sky Software over the period ending 31 December 2017. All consideration payments will be satisfied in cash from Tribal's cash resources available through its existing revolving credit facility.
The unaudited loss before tax of Sky Software for the year ended 30 June 2013, restated in accordance with IFRS, was A$0.6m and the value of gross assets at that time was A$4.5m.
Keith Evans, Chief Executive of Tribal, commented: "Our strategic priority is to provide our customers with evidence-based systems and solutions that will support the on-going improvement of educational outcomes. The Sky Software product set fits well with the Tribal product strategy and provides a cloud-based smaller education provider solution. Its current customer base will also extend our reach and profile in the wider Asia Pacific region."
Nick Stanley, Chief Executive and co-founder of Sky Software, commented: "Sky Software is at an exciting point in its development and the combination with Tribal will provide the additional resources and breadth of expertise required to ensure its success over the coming years."