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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