Latest News
GSE Systems Acquires True North Consulting for USD 9.75m
Wednesday 16 May 2018

16 May 2018 - Maryland, US-based GSE Systems, Inc. (NASDAQ: GVP), a provider of simulation systems, training/consulting and technology-enabled engineering solutions, has acquired Colorado, US-based nuclear power engineering solutions provider acquired True North Consulting, LLC, the company said.
GSE acquired 100% of the equity interest of True North for USD 9.75m, subject to customary pre- and post-closing working capital adjustments.
GSE projects that True North will generate on an annualised basis revenue of approximately USD 10m, add approximately USD 4.0m to GSE's backlog and, after identified synergies are implemented, contribute adjusted EBITDA of approximately USD 2.0m.
GSE entered into an amended and resaid credit agreement with Citizens Bank, consisting of a five-year USD 5.0m revolving line of credit and a five-year USD 25m delayed draw term loan facility to fund acquisitions approved by the lender.
The firm drew on the term loan facility to fund the acquisition of True North. Following the transactions associated with the acquisition, GSE will owe USD 9.75m on the term loan facility.
GSE said the acquisition of True North Consulting broadens its engineering services offering, expands relationships with several of the largest nuclear energy providers in the United States, and adds a highly specialised, complimentary talent pool to the company's employee base.
GSE Systems serves the power and process industries with products and services tailored to help customers achieve performance excellence in design, training, compliance and operations. The firm has over four decades of experience, more than 1,100 installations, and hundreds of customers in over 50 countries spanning the globe.
True North generated revenue of approximately USD 11m, of which over 85% came from the nuclear power industry, for the year-ended December 31, 2017. True North employs roughly 60 full-time and part-time professionals.
Date Published: 16/05/2018
Target: True North Consulting
Country: USA
Deal Size: 9.75m (USD)
Sector: Utilities
Type: Corporate acquisition
Financing: Cash
Status: Closed
Buyer: GSE Systems