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Qualitest seeks acquisitions to reach $1 billion revenue goal – Source Reuters Tech News

TEL AVIV (Reuters) – Israeli software testing firm Qualitest is aiming for sales of $1 billion in five years and plans to make acquisitions to reach that goal, CEO Norm Merritt said.

The company currently has annual sales of about $200 million, which are growing by roughly 25% a year. Merritt, who is based in New York, said the company was “very profitable,” but did not give further details.

Merritt said the mid-20s annual sales growth was organic.

“It will get us to about $400-$500 million and the remainder will be resolved through acquisitions and we have a very healthy M&A pipeline and a sponsor … to help make that happen,” Merritt told Reuters during a visit to Tel Aviv.

He was referring to London-based private equity group Bridgepoint [BRDG.UL] which last year bought a majority stake in Qualitest from Marlin Equity Partners. Financial terms were not disclosed but a source close to the deal said the price was about $420 million..

Bridgepoint will put more equity into…

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Source Reuters Tech News

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