Advanced Computer Software Group plc a leading provider of healthcare and business management software and services, has agreed to acquire Serco Learning, one of the UK's market leading education software providers.
Advanced Computer Software Group plc ("Advanced"), has agreed to acquire Serco Learning, one of the UK's market leading education software providers for a total cash consideration of £7.25m payable £6.25m to Serco plc and £1m to iGate for the novation of a material services contract. Completion is expected on 31 December 2012.
Serco Learning provides business solutions for the education sector, including training and support to over 2,000 local authorities, academies, independent schools and higher and further education providers. Additionally, the business has 49 university college customers taking its back office and student records solutions. The acquisition provides Advanced, which has some 80 local authority customers, significant opportunities for cross-selling its products and services.
In the year ended 31 December 2011, Serco Learning had revenue of circa £13.5m, of which approaching GBP11m was contracted recurring, generating approximately £1.2m of adjusted EBITDA.
Vin Murria, Chief Executive, commented:
"This earnings enhancing acquisition is complementary to the Group's existing education sector offering. It provides us with greater critical mass and a broader offering for the growing education market in the UK, Ireland and Asia Pacific.
"Significantly, in line with previous acquisitions, Serco Learning has high levels of long term contracted recurring revenues and offers considerable cross-selling opportunities across the Group in addition to potential cost saving synergies."
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