TechnologyOne (ASX:TNE) share price hits record high on UK acquisition news

This tech company has announced a new acquisition…

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The TechnologyOne Ltd (ASX: TNE) share price is pushing higher on Friday morning.

In early trade, the enterprise software company’s shares are up 2% to a record high $10.31.

Why is the TechnologyOne share price pushing higher?

Investors have been bidding the TechnologyOne share price higher today following the release of an announcement.

According to the release, the company has entered into an agreement for the acquisition of Scientia Resource Management. It is a United Kingdom-based company servicing the higher education sector.

The acquisition consideration is expected to be 12 million pounds (A$22.4 million) and includes an initial payment of 6 million pounds and further payments based on achieving progressive earnouts through to FY 2023. This will be paid in cash and funded from internal sources.

Management expects the acquisition to be earnings neutral in FY 2021.

Management commentary

TechnologyOne’s CEO, Edward Chung, commented: “This acquisition forms part of our strategic focus to deliver the deepest functionality for Higher Education and it will accelerate our growth and competitive position in the UK as well as have significant benefits in the Australian Higher Education market.”

“Scientia’s market leading product Syllabus Plus provides advanced academic timetabling and resource scheduling. Their products provide mission critical software for over 150 leading Universities across the United Kingdom, and Australia including the University of St Andrews, University of Exeter, Monash University and the University of Queensland.”

Mr Chung notes that the deal will strengthen its offering in the higher education market.

He explained: “The acquisition further expands our Global SaaS ERP solution for Higher Education. The integration of the Scientia’s advanced academic timetabling and resource scheduling capabilities, combined with our market leading Student Management, HR & Payroll, Enterprise Asset Management and Finance capabilities, will provide smarter decision-making eliminating underutilisation of space and resources that is paramount for Higher Education across the globe in a post-covid world.”

The TechnologyOne share price is up 24% in 2021.

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