Published on: March 6, 2014

Acquisition of Sky Software

Tribal has this morning announced a small acquisition – the Australia–based provider of Cloud-delivered Student Management Systems, Sky Software (“Sky”). The consideration is just A$4m initially, with up to A$17m payable dependent on performance over the coming four years. Sky adds two specific elements to the Tribal suite: additional reach to smaller customers in the higher education & vocational learning market, and extended presence in the AsiaPacific area. The transaction is described as being earnings enhancing in 2014, although the scale is clearly modest in relation to Tribal as a whole. We will revisit our forecasts at time of the upcoming 2013 results (due next Friday, 14 March). The deal appears to be a logical strategic move, helping to open up additional (smaller) customer segments and improving geographical reach.

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