Elixirr International PLC on Monday announced its acquisition of Insignaim LLC and Insignium SAS for a maximum consideration of $18.5 million, or around £14.7 million.
Shares in Elixirr were trading 5.4% higher at 490.00 pence each on Monday morning in London.
The London-based business consultancy said that Insigniam, a consulting firm based in Narberth, Pennsylvania, reported a $2.3 million pretax profit and $13.7 million in revenue for its latest financial year.
Elixirr explained that the $18.5 million consideration includes an initial $11.6 million payment from its existing cash resources. It will also this month settle $1.5 million through issuing 258,553 new shares at £4.60 each by Friday.
Furthermore, Elixirr intends to pay deferred consideration of up to $5.4 million, at least 33% of which will be in cash. However, this depends on Insigniam achieving its revenue growth and Ebitda margin targets up to the end of 2026.
Elixirr said that once it completes the acquisition, its net cash balance will total approximately £13.5 million.
Insignium’s co-founders, Shideh Bina and Nathan Rosenberg, will join Elixirr as partners following the merger to ‘spearhead the growth of the business alongside Elixirr moving forward’.
Elixirr said the acquisition will be immediately earnings-enhancing, and that the group will benefit from Insigniam’s ‘deep expertise in additive industries’, its ‘reputation as market leaders’ within a variety of industries, and its ‘significant presence and client base in continental Europe’.
On Insigniam, Elixirr’s Chief Executive Officer Stephen Newton said: ‘They are the undisputed market leaders in transformation and organisational change, and this is something that will be extremely valuable to both our current and future clients.
‘By combining our services and expertise, from strategy through to execution, we are very well-positioned to provide full end-to-end services to our collective clients in a more impactful, dynamic way.’
The transaction is Elixirr’s fifth acquisition since its initial public offering in July 2020, and its third such deal in the US.
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