AIM-listed StatPro has acquired Alphai Pty Limited, an Australian supplier of performance measurement software to asset managers, for a maximum consideration of A$15 million.
In a statement, London-based StatPro - which provides portfolio analytics software to fund managers - says it is acquiring 100% of Aphai for an initial consideration (before expenses) of A$3.25 million.
StatPro says the deferred consideration depends on a multiple of revenue generated by the product acquired and the incremental revenues generated in the Australian market per annum for each of the three years ending 30 April 2009. The total consideration is capped at A$15 million.
Sydney-based Alphai provides its application service provider (ASP) performance product, Max, to 14 clients in Australia, North America and Europe. StatPro says the ability to offer an ASP system is becoming increasingly important as an alternative service offering in the expanding market for performance and analytics solutions.
Alphai reported revenue of A$1.2 million for the year ended 30 June 2005, while pre-tax profit amounted to A$0.32 million, compared to A$0.19 million a year earlier.
Following the acquisition, Alphai co-founder Bruce Graham has become managing director for StatPro in Australia. Commenting on the transaction, Graham says: "This deal secures the continued development of the Max software whilst expanding our resource and support base for existing and potential customers."
Justin Wheatley, chief executive of StatPro, adds: "This is a very exciting opportunity to expand our product offering, acquire 14 more client relationships and a base in Australia and we are confident that the acquisition of Alphai will be a success and earnings enhancing."