Updates

SQS - Quadruples US presence with acquisition

July 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

No surprises to see the latest acquisition as we had foreshadowed the purchase of a US testing business in the March issue. As it is, SQS is paying US$30.7m for Trissential with a third of the consideration being performance-dependent. Trissential offers IT project management consultancy and although it has never bundled testing as part of its services, there is a clear adjacency between the markets. The full headline price equates to 1x sales and based on the last reported pretax profit of US$1.6m, it isn’t a cheap deal. But it is of strategic importance as it “quadruples” SQS’s on-site presence in the US. Since then at the AGM, SQS said that it has won two US clients for Managed Services work - a lead ...

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Benchmark

Cohort - 22% organic revenue growth in FY15

SQS (January 2018)

SQS (October 2016)

SQS (May 2016)

SQS - 11th year of growth ahead despite some pains (October 2015)

SQS - Plans to make USâ€ˆacquisitions (April 2015)

SQS (April 2014)

SQS (December 2013)

SQS - Benefits from rupee depreciation (October 2013)

SQS - Managed services now 34% of work (April 2013)

SQS - Soggy statement creates a buy opportunity (February 2013)

SQS (December 2012)

SQS (July 2012)

SQS - Last remaining independent software testing business on a prospective PE of 9.7 (April 2012)

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