STS Group Capital In Good Health

STS Group announces that it has completed the capital increase to finance the acquisition of 100% “of an international group specialized in computer software and communications documentary,” whose name is not specified.

After the operation, annual sales of software company specializing in archiving and digitization should quadruple to 400 million euros.

This morning in the Paris Bourse, the action STS welcomes new Presber by an increase of 7% which is 13 euros.

A letter of intent to acquire has been validated on 14 February. The exclusive negotiating period will begin April 5, when starting an audit of five weeks after which the purchase should be confirmed.

The target company makes 250 million euros in turnover and 9 million euros in operating profit. Its balance sheet is free of bank debt. The value of “equity” is around 20 million euros, said STS Group.

The capital increase was subscribed by most funds that are shareholders. It included several stages: First, an unconditional tranche of 2.3 million euros on the basis of a share to 16 euros. Then, a second tranche TEPA unconditionally to 2.5 million based on a stock whose price is set by the board of directors between 16 and 20 euros. And finally, a third tranche conditional on achieving the target of 1.7 million on the basis of a share to 16 euros.

The remaining funds will be provided by a debt incurred by the target company.

After this operation, STS Group expects to make a consolidated annual turnover of around 400 million euros. In 2010, sales reached 99.1 million euros and net profit after minority interests of 9.9 million.