- Simulations Plus (NASDAQ:SLP) entered into a Stock Purchase Agreement with DILIsym Services for cash consideration of up to $10M, comprised of $5M up front plus an earn-out of up to an additional $5M over the next three years, based on the profitability of the DILIsym Services division.
- The Agreement provides that $1M of the total up-front consideration will be held back for 18 months to satisfy any indemnifiable claims that may arise pursuant to the terms of the Agreement.
- Upon closing, DILIsym Services, Inc. will become a wholly owned subsidiary of Simulations Plus, Inc. and will continue to operate under the DILIsym Services name.
- John Kneisel, chief financial officer of Simulations Plus, added, “We expect this deal will be immediately accretive to both revenues and earnings, and will not affect our ability to continue to distribute dividends. Of course, the Board of Directors determines the dividend each quarter and has the option of continuing, increasing, decreasing, or eliminating it at any time to meet the cash needs of the business.”
- Press Release