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…
Source Reuters Tech News