LONDON: TP Group, the specialist services and engineering group, has announce the acquisition of the entire issued share capital of Sapienza Consulting Holding BV for an initial cash consideration of €10.0 million and €1.5 million by way of the issue of 20,612,865 new ordinary shares of 1p each in the Company.[the_ad id=”32940″]In addition, a maximum of €2.0 million may also be payable in cash on delivery by the vendors of certain transition activities within two years following completion of the acquisition.
The directors of TP Group expect that the acquisition of Sapienza will be earnings accretive to the Group for the year ending 31 December 20191 and significantly earnings accretive for the year ending 31 December 2020.
The cash element of the consideration will be funded from existing cash resources. The deal is to be completed on a debt-free, cash-free, normalised working capital basis, with a two-year lock-in on the Consideration Shares.
Phil Cartmell, Chief Executive Officer of TP Group, commented: “We are delighted to welcome Sapienza into the Group, bringing highly complementary skills, technologies and customers across both the defence and space sectors.
“Several of the existing Group leadership team have experience in the space sector and we see significant opportunities to leverage the skills and technologies of both Sapienza and TP Group across the enlarged global footprint.
“We are equally excited to see the continued development of new technologies from the team at Sapienza. It is pleasing that Andrea, Mike and Tarik, will continue to work with us post-acquisition to continue managing and growing the business, including the delivery of several technology projects that will build the future propositions of the larger Group.
“We believe this acquisition enhances our unique business by further augmenting our ability to deliver services and skills into highly complex and critical environments. The combination of the two businesses presents a compelling opportunity for future success.”