Bond International Software buys payroll specialist

9th Apr 2014 11:17

Staffing software specialist Bond International Software has acquired smaller rival Eurowage for 8.5m pounds in cash and shares. AIM-listed Bond has conditionally agreed to acquire Sussex-based Eurowage, which trades as FMP Europe, for £6m cash and £1m shares, then a deferred consideration of £1m cash after one year, £0.5m on the second anniversary.Bond will also issue a loan note for the value of the completion net assets of Eurowage, which includes estimated cash of £3.25m and which is capped at £4m.In calendar 2013, international HR and payroll software provider Eurowage had revenues of £3.9m and unaudited pre-tax profit of £1.78m.Bond's Chief Executive Steve Russell said the addition of Eurowage "significantly strengthened" its payroll proposition. "Bond Payroll Services has provided strong levels of growth for the group in recent years and this transaction will ensure Bond's product offering remains best in class and the strong cross selling opportunities with Bond's existing customer base following the acquisition will enable the group to further accelerate our growth."OH