Gresham Computing Plc has acquired SIM Group, a UK-based software testing company. The deal, worth up to 10m pounds (16.1m) in stock and cash, rounds off a series of deals by Gresham.
In February, the Southampton, UK e-commerce firm bought US-based Automated Solutions Inc, maker of the Inferno product, which automates the testing of multiple systems. The SIM deal now gives Gresham a UK channel for this product, additional testing capability as well as around 50 personnel, mostly consultants.
SIM will also provide a European outlet for Inferno and the rest of its product line. We have an operation in France, a small operation in Portugal, good customers in Germany, says Mike Hudgell, director of corporate marketing for Gresham, we hope to expand into Europe with this acquisition. Hudgell was coy, however, on the question of further purchases.
Gresham may be satisfied temporarily. The company also bought two Australian software development firms earlier this year, Ozease Pty and ISS Pty (CI No 3,602). The purchases are part of a restructuring which has taken Gresham away from its roots in ICL mainframe tools and middleware and into e-commerce. Hudgell says the company now focuses on complete e-business; design, development and deployment of systems.
ASI cost Gresham around $2.7m, and the British firm has already signed a contract with America Online Inc, for testing software which continually monitors the server. Hudgell says he expects healthy returns. All the acquisitions were partially funded by a placement in February that yielded 3.1m pounds ($5m).