SciQuest Inc. (SQI: Quote) has entered into a definitive agreement to acquire Spend Radar LLC for about $8 million in cash and $2 million of stock. The company may also make additional payments of up to $7.5 million consisting of cash and stock if Spend Radar achieves certain revenue performance targets over the next 5 quarters. The transaction is expected to be complete on or about October 1, 2012.
In addition, SciQuest expects the newly acquired operations to add some $0.5 million of non-GAAP revenue in the 2012 fourth quarter and grow by about mid-twenties percent in full year 2013. Further, the company expects the newly acquired operations to be slightly dilutive to neutral to non-GAAP net income in the fourth quarter of 2012 and neutral to slightly accretive in 2013.
The financial impact of the acquisition on a GAAP basis cannot be estimated until the allocation of the purchase price is made following the closing of the purchase.
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by RTT Staff Writer
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