Brown (N.) Group PLC
14 August 2000
N Brown Group plc acquires Eunite
N Brown Group plc, the Manchester based direct home shopping company,
announces the acquisition of a majority shareholding and controlling interest
in Eunite Ltd., a technology based convergence company providing e-commerce
solutions.
Eunite is one of the leading providers of e-commerce strategy and
solutions in the developing interactive TV marketplace, and is one of the
first companies in Europe to have designed and built fully functional
e-commerce operations for access via pc, mobile phone, set top boxes and game
consoles.
Eunite has built a profitable and cutting edge business with a blue chip
client base incorporating broadcasting, leisure and retail industries. With
offices in Manchester and London, Eunite currently employs 75 people. It is
expected to post 2000 sales of £3 million. N Brown Group's experience in
customer relations management, distribution, direct marketing and fulfilment,
through its Zendor.com e-fulfilment subsidiary, will complement Eunite's
existing services.
N Brown will acquire a 60 per cent stake for £6.8m in cash with an earn out on
the remaining 40 per cent over the next three years which would, if growth
targets are achieved, make the total consideration of £18.7 million.
The acquisition adds further significant capabilities to Zendor.com's
fulfilment strengths, completing Zendor.com's ability to provide clients with
a complete end-to-end e-commerce fulfilment service. This offering includes
assistance with product sourcing; warehousing; provision of call centre
services; customer care and accounts support; web site preparation, hosting
and development; home delivery, collection and processing of returns.
The acquisition will also bring experience and expertise to benefit N Brown's
core home shopping division by providing specialised support in the
development of home shopping channels. Eunite's track record in applying
leading edge technology for clients, enabling them to exploit new mediums in
order to reach consumers across a broad spectrum of social, demographic and
product areas, coupled with Zendor.com's fulfilment capabilities, offers
considerable opportunities for existing customers and new customers of the two
businesses.
Jim Martin, Chief Executive of N Brown Group plc will become non-executive
chairman of Eunite and Graham Green, IT Director will also join the
board.
Commenting on the acquisition, Jim Martin, Chief Executive of N Brown Group
plc said:
'We are excited about the opportunities the acquisition of Eunite brings to
both N Brown and Zendor.com. Eunite adds both depth and further scope to the
Zendor.com proposition, through its specialised design and production skills
in e-commerce, audio and video preparation, database integration and web and
iTV site development.
'We believe that TV will become the natural choice for home shopping and
interactive services, supplementing sophisticated web based offerings and the
capability to provide a multi-platform e-commerce service will be vital as
this market develops.'
Chris Sheffield, Managing Director of Eunite added, ' The strategic fit
between Eunite, N Brown and Zendor.com creates significant opportunities for
all the businesses. There is a clear need among our client base and in the
wider retail community for quality logistics, customer service and
administration functions to support traditional businesses across a wide range
of sectors as they develop into new technologies and mediums. This deal
represents a step change for us in terms of the range of service we can offer
and the opportunities open to us for developing our business. Everyone at
Eunite is focused on exploiting these opportunities to the full with our new
colleagues at N Brown Group plc and Zendor.com.'
For further information please contact:
Jim Martin
N Brown Group plc Tel: 0161 236 8256
Tim Kowalski Tel: 0161 236 8256
N Brown Group plc
Chris Sheffield
Eunite Tel: 0161 237 4900
Gerald Gradwell/Luisa Winnett Tel: 020 7457 2345
Gavin Anderson & Company
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