Tier Technologies, Inc. Announces Agreement
to Acquire Midas Computer Software Limited
ACTION ITEMS
Tier Technologies, Inc., an information technology consulting company, today has announced an agreement to acquire Midas Computer Software Limited, a leading provider of Oracle-related data warehouse and data migration services to commercial and governmental entities in the United Kingdom. Under the agreement, Tier will purchase 100% of the outstanding capital stock of Midas for approximately $2.4 million in cash and approximately 51,000 shares of Tier's Class B Common Stock (currently valued at approximately $660,000). Up to an additional 7.9 million pounds sterling (approximately $13.0 million at current exchange rates), may be paid to Midas in cash and Tier's Class B Common Stock over the next three years based on the achievement of significant revenue and earnings growth and related performance targets. The transaction is expected to close in December 1998.
Midas reported revenues on a UK basis for its most recent fiscal year ended February 28, 1998, of approximately $5.2 million, an increase of over 80% from the prior year. As of October 31, 1998, Midas had a workforce of approximately 40.
"Midas' expertise in providing high level Oracle data migration services to some of the UK's leading organizations adds an important element to the scope and depth of our Migration Solution," said James L. Bildner, Tier's Chairman and Chief Executive Officer. "We believe the Oracle expertise Midas and its senior consultants bring to Tier will leverage Tier's existing large project capabilities in the U.S., Australia and the UK. As our clients face increasingly complicated challenges in maximizing the use of data in their businesses, the combined knowledge and experience of Tier and Midas will prove invaluable to both our commercial and government services divisions."
Robert Thompson, Founder and Managing Director of Midas, said, "Tier's Migration Solution, worldwide delivery capability and financial resources will allow us to offer our clients and consultants opportunities that were not available to us on a stand-alone basis. With our companies' combined expertise and the market opportunities available in the UK, Australia and the U.S., we believe this agreement will position Tier and Midas for greater prominence and growth."
Tier Technologies, Inc. provides information technology consulting, application development and software engineering services that facilitate the migration of clients' enterprise-wide systems and applications to leading edge technologies. Tier serves Fortune 1000 companies and government entities through its offices in the United States, Australia and the United Kingdom.