StockMarketWire.com - Quality Assurance provider Intertek said Friday it had agreed to acquire Alchemy for a total of $480m.

The acquisition of Alchemy, a technology-enabled people assurance solutions provider, would further strengthen Intertek's global Assurance offering, Intertek said.

Alchemy is expected to record Billings of $66m, adjusted billings EBITDA of $22m for the 12 months ending on 31 December 2018.

Intertek said it would finance the acquisition using available debt facilities and cash and expects the acquisition to deliver an earnings improvement in the first full year after acquisition. The transaction is expected to be completed in third quarter of 2018.

Intertek said it expected the Alchemy to hit a number of milestones within five years including 20% annual growth in billings and revenue, above 30% IFRS earnings (EBITDA) margin and strong cash conversation. 'With the acquisition of Alchemy, we are continuing to strengthen our TQA value proposition with the expansion of our Assurance business into People Assurance, helping to provide our clients with a higher level of quality assurance and with greater peace of mind,' said André Lacroix, Chief Executive Officer of Intertek.

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