(Editor’s note: This story has been corrected to reflect the fact SciQuest is not selling stock to raise capital.)
CARY, N.C. – SciQuest (Nasdaq: SQI) has closed on its acquisition of Spend Radar.
In an SEC filing Wednesday, SciQuest reported it had transferred $2 million in stock to the owners of Spend Radar.
Another $1.5 million in stock will go to Spend Radar if it meets certain sales and other targets.
SciQuest closed on its acquisition of Spend Radar on Oct. 1.
“The shares being issued constitute partial payment of the purchase price for the assets of Spend Radar LLC, which includes earnout payments to be paid on or before January 31, 2014,” SciQuest said in the filing.
In another filing, SciQuest noted that the closing payment for Spend Radar “includes $1.2 million in cash and 16,988 shares of common stock that will be deposited in escrow to satisfy potential indemnification claims, and the Contingent Payment includes up to $360,000 and 5,096 shares of common stock that will be deposited in escrow to satisfy potential indemnification claims.”
SciQuest, a provider of e-procurement services, bought Spend Radar last month in a deal could be worth as much as $17.5 million.
SciQuest paid $8 million in cash and $2 million in stock for Spend Radar, which focuses on spend management solutions and analysis.
Owners of Spend Radar, which is based in Chicago, could earn another $7.5 million in cash and stock if Spend Radar hits revenue targets over the next five quarters.
In July, SciQuest bought Upside Software for $22 million.