LONDON (ShareCast) - (Sharecast News) - Tribal Group said on Friday that it has bought Crimson, a Swansea-based provider of customer relationship management based solutions to the education market, for up to £10m.
The consideration comprises an initial £6m and a further £4m based on meeting annual recurring revenue growth targets.

Tribal said the deal, which will be financed through existing cash resources, will be earnings accretive in the medium terms as it is reinvesting in Crimson to drive increased revenue in markets.

The company - a provider of software and services to the international education management market - said Crimson brings with it a broad existing customer base and strong relationships with universities and further education colleges, presenting "compelling" new cross-selling opportunities.

For the year ended 31 December 2018, Crimson had revenues of £3.0m, operating profits of £0.6m and net assets of around £0.3m.

Tribal's chief executive officer, Mark Pickett, said: "The acquisition of Crimson provides our current customers with complementary functionality and delivers to our vision of empowering the end to end student lifecycle.

"We warmly welcome all customers who are new to Tribal and look forward to fully supporting them with their organisation's needs into the future, and also welcome the whole Crimson team to Tribal."

At 1240 BST, the shares were up 2.1% at 72.50p.

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE