Press Releases

kemp little advises cresta group on its sale to sqs software quality systems ag

June 2006

Kemp Little LLP, the leading UK technology law firm, advised Cresta Group, the leading provider of software testing services in UK, Ireland and South Africa on its acquisition by SQS Software Quality Systems AG, the leading pan-European software testing and quality management organisation. SQS was the first German company to have its primary listing on AIM.

The consideration for the acquisition is up to £18million with 78% of the deal value in SQS stock and the remainder in cash. The initial consideration of £6 million is made up half in cash and half in shares and was paid following the German court registrations of the necessary increase in share capital. The balance of the consideration due is dependent on achievement of specific earn out targets over the next two years.

The acquisition, which received national press coverage, will create the largest pure-play software testing and quality management consulting practice in the UK. For SQS it increases its customer base in the UK and significantly increase UK revenues from 20% to 40% of total group turnover with enhanced margins.

David Cotterell, Cresta CEO and the new CEO of SQS (UK), said "This transaction puts us ahead by two years and accelerates opportunities for both our clients and staff - as well as ensuring our growth continues strongly".

Charles Claisse, a partner in the Kemp Little corporate group, and assistant, Charlotte Hawkins, advised Cresta. Charles said that "I was delighted to be working with Cresta on this sale. I have no doubt that everyone involved will make a great success of the opportunities arising as a result of the combination of the entities."

Nick Pointon, a director of Cresta and SQS (UK) said "Charles and his team were instrumental in getting the deal signed within the demanding timelines and worked tirelessly with me and other members of the Cresta team to make the deal happen."

Decherts LLP advised SQS Software Quality Systems on the acquisition.

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For further information, please contact:

Kemp Little LLP
Charles Claisse (020) 7710 1626
email: charles.claisse@kemplittle.com

About Cresta:

Cresta has over 200 staff and is headquartered in Central London with a subsidiary in Ireland and a branch in South Africa. It has at least 30 concurrent customers at any time including 5 of the top 10 FTSE 100 companies spread across banking, utility, telecoms, e-commerce and energy sectors.

About Kemp Little LLP:

Kemp Little LLP is a leading technology law firm dedicated to commercial, corporate and employment legal work for business and technology clients.

The firm's core attributes are:

technical excellence: Kemp Little has won numerous awards for technical excellence in the last five years;
innovation in legal services: Kemp Little is the first UK law firm LLP and the first firm to launch a client WIP (work in progress) extranet to enable clients to see real time 'what's on the clock'.

The firm is located at:
Cheapside House
138 Cheapside
London EC2V 6BJ
Tel: 020 7600 8080
Fax: 020 7600 7878