Intertek PLC (LON:ITRK) is splashing out US$480mln (£368.8mln) in cash to buy US-based software provider Alchemy Investment Holdings.
The FTSE 100-listed product testing company said it expected the acquisition to deliver attractive returns to shareholders and to be earnings accretive on a billings basis in the first full year after acquisition.
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It added that Alchemy - founded in 2003 and headquartered in Austin, Texas - expects to record billings of US$66mln and adjusted billings underlying earnings (EBITDA) of US$22mln for the 12 months ending 31 December 2018.
It had annualised organic billings growth of around 17% between 2016-2018.
Alchemy, which employs approximately 270 people at four locations across the US and Canada, is majority owned by the private equity firm The Riverside Company.
André Lacroix, Intertek’s chief executive officer commented: “Alchemy is a high-quality business with scalable solutions that can be rolled out across many different industries and geographies. This will further accelerate the growth momentum of our capital light and high margin Assurance Business.”