Acquisition

Anite Group PLC 25 March 2002 Monday 25 March 2002 ANITE GROUP PLC ('Anite' or 'Company') Anite makes further public sector acquisition for up to £4.975 million INTRODUCTION Anite, the European consultancy and services company, today announces that it has completed the acquisition of the entire share capital of Ideal Technology Services Limited ('ITS') for a consideration of up to £4,975,000. ITS provides software and consultancy services to local authorities and will be integrated into Anite Public Sector ('APS'). The consideration comprises an initial consideration of £225,000 to be satisfied in bank guaranteed loan notes. Further consideration of up to £4,750,000 will be payable over a three year period, based on profit targets, to be satisfied by a mixture of Anite Shares and bank guaranteed loan notes. BACKGROUND TO AND REASONS FOR THE ACQUISITION Anite provides a portfolio of services from IT consultancy and applications software to systems integration and managed services to four principal markets in 11 countries: telecoms, travel, public sector and finance. Anite Public Sector continues to build its position in the UK local authorities' market, with over 70% penetration, based on a range of applications and an increasing customer base. The business is also well placed to benefit from the government's initiatives for 'joined-up' local and central government and e-government, which include budgeted spending, by 2005, of £2bn on e-government solutions to local authorities. Following its establishment as a fully integrated and homogenous business during the last financial year, the business has increased its sales from £7m two years ago to £38m last year, generating operating profits before tax of £2.2m, with further strong growth in sales, profits and order books achieved in the six months to 31 October 2001. ITS provides software supply and consultancy services to local authorities. ITS developed the PARIS payments and revenues information system for local authorities and government agencies. As well as managing cash and credit card payments over the counter for council tax and rents, PARIS supports electronic payments via the Internet and by telephone using a call centre or interactive voice response technology. ITS enables Anite to offer e-payments integrated with its other products that help the public sector to meet the challenges of e-government. ITS, based in Manchester, employs 15 people, and will be integrated into APS as part of its local government corporate solutions activity. Founded in 1999, ITS has a strong recent track record of customer growth. The acquisition is in line with Anite's stated strategy of building its Public Sector business by organic growth and selective acquisitions which reinforce its strategic focus on enabling joined-up working across central and local government and strengthen its portfolio of software and services across the whole of the UK public sector market. STRUCTURE The transaction involves the acquisition of the entire share capital of ITS pursuant to a share purchase agreement. The consideration, which is capped at £4,975,000 comprises the following: (i) initial consideration of £225,000 to be satisfied in loan notes guaranteed by Lloyds TSB Bank plc; and (ii) earn-out consideration of up to £4,750,000 ('Earn-Out Consideration') payable in six tranches at six monthly intervals between completion and 30 April 2005 to be satisfied as to 60 per cent of each tranche by the issue of ordinary shares of 10 pence each in the capital of Anite and as to 40 per cent of each tranche by the issue by Anite of loan notes guaranteed by Lloyds TSB Bank plc. The amount of each payment to be made in respect of the Earn-Out Consideration will be calculated based on the operating profits of ITS for the preceding financial period after interest and before tax but excluding non-recurring exceptional items. Anite's Chief Executive John Hawkins, commenting on the acquisition, said: 'We can now offer end-to-end financial management for local government and other parts of the public sector in a market being driven by the 2005 deadline for delivering public service access electronically. 'This acquisition also reinforces our ability to provide a far more joined up solution than our competitors whilst enabling us to benefit from planned legislation that is expected to allow local authorities to charge for a wider range of services.' - Ends - For further information please contact: www.anite.com Anite Group Plc 0118 945 0121 John Hawkins, Chief Executive Simon Hunt, Finance Director Weber Shandwick Square Mile 0207 950 2800 Reg Hoare/Laurence Read This information is provided by RNS The company news service from the London Stock Exchange
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