The new company’s integration will help Facephi to improve its business plan.
The acquired company’s largest customers include town councils and regional authorities, in addition to banks and insurance companies such as Cajamar, Sanitas and Ocaso
FacePhi buys the technological company Teralco for 1.4 million euros to boost its expansionMadrid, 24th September 2014.- FacePhi, specialists on face recognition technology, agreed today with the technological company Teralco the commitment for the acquisition of the 100 percent of its capital. The payment (around 1.4 million euros) is 7.5 times its Ebitda – Earnings Before Interest, Taxes, Depreciation, and Amortization- of 2014, just as FacePhi informed today to the Spanish Alternative Investment Market (MAB). This acquisition will be signed in the following days after the “Due Dilligence” and is carried out through a combination of both cash payment and share-based payment. It will be a deferred payment without interests which will run for the next three exercises. Nevertheless, this corporate operation will enable FacePhi to improve its Business Plan for the next years. With the integration of this technological firm, which is specialized in developing and marketing software solutions for private and public sector, FacePhi reinforces its expansion strategy to get to the final customer without an outside company. Furthermore, it will improve the management model automation and open new business lines in areas such as Mobility, Cloud Computing and Business Intelligence. Despite the present environment, Teralco is one of the most profitable technological companies with 823.697 euros of incomes in 2013 and 187.447 euros of Ebitda. In addition, it has a wide range of clients, in both private and public sectors which represents 65 percent and 35 percent of its incomes, respectively. In the private sector, among its customers there are main banking institutions and insurance companies such as Cajamar, Caixa Penedès (current Banco Sabadell), Sanitas and Ocaso as well as the software multinational company known as Information Builders and alliances with AWS (Amazon Web Services). On the other hand, in the public sector, Teralco has contributed to the modernisation and efficiency of organizations such as the Spanish Public Expenditure Monitoring and the provincial councils of Alicante, Sevilla, Almería and Ciudad Real, among other places, promoting the citizens’ access to the e-government.
Table 2. Distribution of revenues of Teralco by sectors
Data source: Teralco