Perth-based software firm Cintellate has been sold for more than $14 million to international information services company SAI Global.
Perth-based software firm Cintellate has been sold for more than $14 million to international information services company SAI Global.
The full statement is pasted below:
SAI Global Limited (ASX:SAI) today announced the acquisition of Cintellate Pty Ltd, a leading global provider of compliance and risk management tools that allow companies to manage their compliance obligations and risk mitigation in the areas of safety, health and the environment (SH&E).
Cintellate is head-quartered in Perth, Western Australia and has an office in Houston, USA.
The company focuses predominantly on the utilities, oil, gas, refining, mining, engineering, construction, manufacturing and chemical sectors.
Since its foundation in 1994 Cintellate's core technology has been developed specifically for the management of safety, health and the environment.
Commenting on the acquisition, the Chief Executive Officer of SAI Global Limited, Mr Tony Scotton, said "safety, health and the environment are attractive growth sectors and Cintellate has a proven technology solution which has seen sales continue to grow despite the recent challenging economic times".
He added "SAI Global has a stated strategic intent to concentrate on acquiring assets with proprietary intellectual property that focus on providing work flow solutions to global clients so Cintellate fits perfectly with our objective.
The business has grown revenue and profit strongly over the last three years".
This acquisition enhances SAI Global in two important ways by providing:
- a state of the art, market-leading suite of software tools for compliance and risk management that complements SAI's existing Safety Health and & Environment products, and
- an opportunity to leverage the Cintellate product suite into new markets using SAI's established geographic footprint and sales channels and accessing Cintellate's client base for existing SAI products.
The Chairman of Cintellate, Mr Tim Moore said "A number of Fortune Global 500 companies rely on the Cintellate solution which after 15 years of intense research and development is a world class platform.
Cintellate's continued global growth prospects are now substantially enhanced by teaming up with SAI Global. Environmental stewardship and corporate sustainability will have increasing priority meaning Cintellate's innovative software and expert services will be in demand".
He added "Angela McQuillan, the founder and CEO of Cintellate, has continually strived to position the business to attract the very best staff and clients and the SAI Global purchase helps ensure that goal is realised".
Consideration for the acquisition is made up of an initial payment of approximately $14.1M (10% as SAI stock and the balance in cash from existing facilities) and a potential earn out based on the increment FY10 profits over FY09.
The transaction is expected to add around of $9 million in revenue and be marginally EPS accretive over the balance of FY10.
SAI Global provides organizations around the world with information services and solutions for managing risk, achieving compliance and driving business improvement.
SAI Global provides aggregated access services to standards, handbooks, legislative and property publications; and audits, certifies and registers your product, system or supply chain. SAI Global facilitates good governance and awareness of compliance, ethics and policy issues and provides training and improvement solutions to help individuals and organizations succeed.
Cintellate's core business is the provision of software products and associated services that enable organisations to create long-term shareholder value through the effective and efficient management of risks and opportunities at both a strategic and operational level, principally in the areas of safety, health and the environment (SH&E). Cintellate was established in Perth, Western Australia in 1994 and also has an office in Houston, USA.
