TP Group has reached an agreement to acquire the entire issued share capital of ALS Technologies Ltd (ALS) and Flexible Software Solutions Ltd (FSS) for a combined initial consideration of £1.25m.
"The TPG Board believes that the acquisition of both ALS and FSS will deliver significant synergy benefits to the group," the company said.
The consideration was funded from TP's existing cash resources, on a debt-free and cash-free basis.
A further consideration of up to £1.5m would fall due on delivery of profit related earn-out targets over the first 20 months from completion.
The maximum consideration payable for ALS and FSS, assuming all earn-out targets were met, is £2.75m.