Testing services vendor SQS Software Quality Systems has agreed a deal to buy insurance sector specialist Triton for a maximum of 15.5m euros ($20.9m).
Cologne-based SQS is the largest specialist testing services vendor in the world and has used the proceeds of its flotation on London’s Alternative Investment Market in September 2005 to beef up its international operations. Last May, it bought London-based testing consultancy Cresta Group for 18m pounds ($36m).
Triton, which is based in Austria, is advises insurance companies about optimizing their claims and policy processing through the implementation of new technology platforms. It will form part of SQS’s management consulting division that was launched last year.
The target company made a pre-tax profit of 1.4m euros ($1.9m) on revenue of 4.8m euros ($6.5m) in full-year 2006 and has 35 employees. Its largest client is Germany insurance giant Allianz. SQS will pay an initial 4.4m euros ($5.9m) in cash plus a two-year earn-out of 11.1m euros ($15m) in cash and shares.