Acquisition

RNS Number : 9725T

Tribal Group PLC

20 December 2012

 

20 December 2012

Tribal Group plc

Acquisition of International Graduate Insight Group Limited

Tribal, a leading provider of technology systems and solutions to the education, learning and training markets, is pleased to announce that it has entered into an agreement to acquire the entire issued share capital of the International Graduate Insight Group Limited ("i-graduate"), an education benchmarking and student experience research business.  The acquisition is expected to complete on 2 January 2013 and a further announcement will be made to confirm completion has taken place.

i-graduate is an independent benchmarking and analytics group, working in partnership with institutions and education organisations to provide evidence-based information on education experience and outcomes across higher education, further education and schools markets.  The business works with over 1,200 education institutions in 24 countries, receiving and analysing feedback from more than 1.3 million students of over 190 nationalities.  i-graduate will join Tribal's Services business and will strengthen the Group's evidence-based analytics offering. 

The total consideration for the entire issued share capital of i-graduate on a debt-free/cash-free basis will be up to a maximum of £7.5 million, subject to satisfaction of earn-out criteria based on incremental earnings over the 3 year period ending 31 December 2015.  An initial amount of £2.86 million is payable on completion.  All consideration payments will be satisfied in cash from the group's existing cash resources.  The acquisition is expected to be earnings accretive for Tribal in its first full year in the Tribal Group.

i-graduate was founded in 2005 by Will and Lindsay Archer.  Will Archer will continue to lead the i-graduate business and will head up the integration of i-graduate's offerings with Tribal's existing financial benchmarking and analytic capabilities.

The unaudited profit before tax of International Graduate Insight Group Limited for the year ended 31 March 2012 was £423k and the value of gross assets at that time was £1,799k.

Tribal's Chief Executive Officer, Keith Evans, 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.  Quantitative and qualitative technology based benchmarking and analytics is a cornerstone of the evidence base.  This acquisition will enable us to strengthen our capabilities in this exciting and emerging area, expands our product offering to our existing customers and provides increased access for our existing products to the i-graduate customer base, both in the UK and in our targeted international markets."

i-graduate's Chief Executive Officer, Will Archer, commented:  "Joining the Tribal Group will allow us to access the level of technical skills, platforms and support to allow us to accelerate the development of i-graduate's products and services and enhance the insight and support we provide to educators worldwide.  It will help i-graduate to maintain the market-leading global position that it has established."

Current trading

Further to our recent Interim Management Statement of 14 November 2012, the trading performance of Tribal in the period to 30 November 2012 has been robust and we continue to generate good cash flow. 

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Contacts:

Tribal Group plc	Tel: [phone]
Keith Evans, Chief Executive Officer Steve Breach, Group Finance Director
Weber Shandwick Financial	Tel: [phone]
Nick Oborne / Stephanie Badjonat

Notes to Editors

About Tribal

Tribal supports the delivery of education, learning and training services around the world. We build world-leading software, support adult learning, careers and professional development and provide school inspections and improvement services both in the UK and abroad.

We work in partnership with a wide range of organisations, including schools, colleges and universities, prisons and social services, government agencies and large and small employers.

Tribal has 1,300 staff and our work spans five continents across the world. More information about Tribal is available online at www.tribalgroup.com.

 

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