Elixirr International has announced the acquisition of US-based Hypothesis Group in a deal worth up to $45m (£34.6m).

The move is Elixirr’s sixth acquisition since the challenger consultancy’s IPO in July 2020..

Hypothesis is a US-based insights and strategy firm and in the 12 months to August 2024 recorded revenue of $28.1m (£21.6m).

London-based Elixirr confirmed that the initial consideration for the deal is worth $37.3m (£28.7m), of which $28.9m (£22.2m) has been settled from Elixirr’s existing cash balances and revolving credit facility.

An estimated $8.4m (£6.5m) is to be settled through the issuance of new shares in the company at £7.00 per share, while the move also includes a deferred consideration of up to US$7.6m (£5.8m) in cash – the majority of which will be payable in FY25 in relation to EBITDA performance in FY24.

“We first met the Hypothesis team about 18 months ago, and the opportunity to join forces has consistently excited us ever since those very first discussions,” commented founder and CEO of Elixirr, Stephen Newton.

“With our challenger DNA and focus on high performance, both Elixirr and Hypothesis are premium brands that work with premium clients. The acquisition will further solidify the strong reputation we've been building and bring rigour to our research and insights offering.”

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