CARY, N.C., Sept. 28, 2012 (GLOBE NEWSWIRE) -- SciQuest, Inc., (Nasdaq:SQI) a leading provider of cloud-based spend management solutions, today announced that it has signed a definitive agreement to acquire Spend Radar LLC, a rapidly growing provider of fast, easy and flexible spend analysis software. SciQuest purchased Spend Radar's assets for total consideration of approximately $8 million in cash and $2 million of common stock. SciQuest may also make additional payments of up to $7.5 million consisting of cash and stock if Spend Radar achieves certain revenue performance targets over the next 5 quarters. SciQuest expects the acquisition to close on or about October 1, 2012.
"The acquisition of Spend Radar represents further progress against the goals we announced at the beginning of the year and strengthens our strategic position as a leading provider of spend management software," said Stephen Wiehe, president and CEO of SciQuest. "Their unique, next generation technology that includes powerful yet intuitive analytical tools, allows customers to gain a deep understanding of their spending patterns.
"Customers have asked for us to help them obtain a holistic view of their expenditures in order to maximize their negotiating leverage with suppliers, and we believe Spend Radar's technology is the best tool to empower them to do so. As a result, we expect this acquisition will help us both gain new customers and broaden the solution suite we provide to existing customers."SciQuest expects the newly acquired operations to add approximately $0.5 million of non-GAAP revenue in the fourth quarter of 2012 and grow by approximately mid-twenties percent in full year 2013. The Company also anticipates that the newly acquired operations will be slightly dilutive to neutral to non-GAAP net income in the fourth quarter of 2012 and neutral to slightly accretive in 2013. The financial impact of the acquisition on a GAAP basis cannot be estimated until the allocation of the purchase price is made following the closing of the acquisition.
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