LONDON: Pennant International Group has exchanged contracts to acquire the entire issued share capital of Australian software business, Absolute Data Group (ADG).

The maximum consideration for the acquisition is AUD 6.5 million (£3.44 million), subject to adjustment on completion for cash, working capital and debt. 50% of the price is payable upfront with AUD 0.325 million (£0.172 million) to be settled by the issue of ordinary Pennant shares and the remainder in cash. The remaining 50% is payable in the five years following completion of the acquisition.

Pennant is a supplier of integrated training and support solutions, products and services which train and assist operators and maintainers in the defence and regulated civilian sectors. The Group anticipates that the acquisition will complete before the end of February 2020.

ADG is an Australian business based in Brisbane which owns the ‘R4i’ suite of technical documentation software (R4i). ADG has a well-established US trading subsidiary which accounts for approximately 65% of the target group’s sales. The acquisition will provide Pennant with an expanded presence in its target growth markets of North America and Australasia.

Commenting on the Acquisition, Phil Walker (Pennant CEO) 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.”

Edited by Nayyar Iqbal