Staverton-based firm expanding into North America and Australia with $6.5million acquisition
By James Young | 21st January 2020
A $6.5million deal has seen Staverton-based technology company Pennant International expand its operations in Australasia and North America.
In an announcement to the Stock Exchange this morning, Pennant International Group PLC confirmed it had exchanged contracts to acquire the entire share capital of Aussie firm Absolute Data Group Pty Ltd.
Pennant have agreed a maximum consideration of $6.5million Australian dollars - £3.44million - for the Brisbane-based software firm.
The announcement confirmed that 50 per cent of the price is "payable upfront" with the remainder payable in the five years following completion of the acquisition.
Pennant say it "anticipates that the acquisition will complete before the end of February 2020.
ADG own the R4i suite of technical documentation software which will now be added to the Pennant portfolio of training and support solutions used in the defence and civilian sectors.
According to the announcement, the Australian firm have a "well-established US trading subsidiary which accounts for approximately 65 per cent of the target group's sales.
It adds: "The acquisition will provide Pennant with an expanded presence in its target growth markets of North America and Australasia."
Pennant CEO Phil Walker said: "We have known and admired the ADG business for some time so we are delighted to have exchanged contracts for its purchase by Pennant.
"There are clear synergies between our respective businesses and numerous opportunities to provide an end-to-end solution to the users of our products.
"We are looking forward to working with the vendors, Tammy and Michael, as ADG moves into an exciting new phase."
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