RPS Group plc (RPS.L) announced the acquisition of Manidis Roberts Pty Ltd., an Australian consulting firm, for a maximum consideration of A$30 million or 19 million pounds. Consideration paid at completion was A$18 million or 11.4 million pounds, funded from the Group's existing resources.
Two further sums of A$6 million (£4.0 million), would be paid on the first and second anniversaries of the transaction, subject to certain operational conditions being met. If these operational conditions are not met, the deferred payments would not be made for 10 years. The deferred amounts include the payment of market rate interest.
The vendors of the business are directors, staff and former staff. The director and staff vendors are remaining with RPS.
For the remainder of 2012, after taking account of integration and interest costs, the Group expects MR to improve Group earnings marginally. RPS now expects MR's performance in 2013 at least to return to 2010/2011 levels, making a significant contribution to the Group result.
Headquartered in Sydney, Manidis Roberts employs nearly 90 staff and generated revenues of A$27.2 million and pre-tax profit of A$5.8 million for the year ended June 30, 2011.
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by RTT Staff Writer
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