TXT e solutions : The Pace acquisition has closed
CS – 1 4 2016 – Closing Pace – ENG V3
P R E S S R E L E A S ETXT e-solutions: the PACE GmbH acquisition has closed today as plannedMilan, 1 April 2016
The preliminary transaction between TXT e-solutions and investors in PACE Aerospace Engineering and Information Technology GmbH, announced on February 29, 2016 has been finalized and has closed today, on time and as planned, following completion of agreed conditions precedent.
In the month since the preliminary agreement, TXT Next and PACE have initiated joint operations for on-going contract with a leading US customer, started a joint sales effort in a project for another European flagship customer and launched cooperation in R&D for advanced applications of tablet devices in the cockpit (the so-called “Electronic Flight Bags”).
The acquisition transaction includes consideration of 5.6 m€ paid in cash by TXT on April 1st for 79% of PACE shares; additional cash payments in 2016 and 2017, based on results from PACE operations, now estimated at about 2.2m€; put-call options for the remaining 21% of the shares owned by the three managing founders to be exercised in the period 2020-2021, at a price based on future PACE results and multiples in line with the initial transaction; consolidation of PACE results into TXT’s as of Q2 2016; permanence of the three founders to drive future growth.