CRC Ends Earnout Agreement With Final Payment.
UK-based IT repair company CRC Group Plc has revised the deal
under which it acquired mobile phone repair company AIDL Group in 1998,
ending a complicated earnout arrangement that ran until 2001 with a
final payment of 3.5m pounds ($5.5m). This brings the total price paid
for AIDL to 14.5m pounds ($22.8m). Directors felt that uncertainty over
the likely amounts of future payments under the earnout deal was
deterring potential investors.
CRC provides a pan-European repair process appealing to major IT
suppliers who want to outsource the warranty and repair business. It
also expects to benefit from European legislation that will force firms
to offer a warranty service across Europe and not just in the country
where the equipment was bought.