Expert System (MI:EXSY) is transitioning from being largely Italy-facing into a truly international business with operations in the US, UK, France and Germany. The company estimates that the TEMIS acquisition (completed in September) will increase foreign exposure from 11% (H114) to 65% (H115 pro forma). Based on H115 results, we have reduced our FY15 revenue forecast for Expert System. With the inclusion of TEMIS, we forecast 46% group growth for FY15. We introduce a forecast for FY16 of 52% growth, supported by the recently announced commercial partnerships with Google (O:GOOGL) and Atex, and a full-year contribution from TEMIS.
Acquisition and partnerships expand sales reach
Expert System completed its acquisition of French text analytics company TEMIS at the end of September, adding a business with complementary products, while also introducing Expert System to new European markets. Expert System has also announced two significant partnerships. It has become a Google for Work Search Technology Premier Partner, making its Cogito API available on Google Search Appliance and giving it access to Google’s partner network. It has also announced a strategic partnership with digital media software company Atex to integrate its Cogito technology into the Atex Digital Media platform.
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