Datanet Holdings Limited Acquired
365 Corporation PLC
3 February 2000
365 Corporation plc acquires Datanet Holdings Limited for £31,084,500 to
strengthen its position as a leading provider of sports and entertainment
content.
Datanet brings to 365 Corporation plc ('365'):
+ A range of high quality content and services, including Planet Rugby,
Planet F1, Racetips, Cricketline, Sportszine and Planet-Trivia.
+ Experienced and complementary management team.
+ Over 300,000 unique users (December 1999).
+ Multi-platform distribution capability.
+ Complementary statistical database products and expertise.
+ Strategic partnerships with major portals and ISPs.
+ Growing Internet revenues.
365 Corporation plc, the provider of content, community and communications
services across multiple digital platforms, announces that it has entered into
an agreement to acquire the entire issued share capital of Datanet Holdings
Limited, the holding company of Datanet Marketing Services Ltd ('Datanet').
Datanet, which was founded in 1995, is one of the most successful and well-
established companies in its market, producing a range of high quality digital
sports and entertainment content. Its extensive portfolio includes Planet
Rugby, one of the foremost rugby sites on the web. Following on from 365's
acquisition of RugbyRugby.com in December 1999 and the success of
rugby365.com, which produced and hosted the ITV 1999 Rugby World Cup web site,
the acquisition ensures 365's dominance in the online global rugby market.
In addition, London-based Datanet has developed high quality products in
Cricket, Formula 1 and Horse Racing with unique statistical and editorial
content and top contributors such as South African cricketer Allan Donald and
rugby's former world record points holder Michael Lynagh.
Datanet's entertainment division runs a network of live multi-player trivia
games under the Planet Trivia brand. The network enables thousands of users
to compete against each other in real time in a global trivia challenge.
Planet Trivia can now be delivered across 365's multiple digital platforms.
Datanet has content distribution deals with a number of the leading portals
and ISPs and is currently producing the software and technology to deliver its
content across multiple platforms.
The total consideration for Datanet is £31,084,500, to be satisfied as to the
issue of 12.42 million new 365 ordinary shares at a closing mid-market price
of £2.325 as at 2 February 2000 and £2,208,000 in cash. The consideration
will be adjusted to the extent that net current liabilities or net liabilities
of Datanet exceed £250,000 at the completion. During December 1999, the
Datanet sites attracted over 300,000 unique users generating over 1 million
user sessions. Unaudited management accounts for Datanet show net liabilities
of £340,851 as at 31 January 2000, and a loss of £638,890 in respect of the
ten months ending 31 January 2000. The acquisition is conditional upon
receipt of certain clearances from the Inland Revenue by the current Datanet
shareholders, which are expected to be received shortly.
Datanet Holdings management shareholders Nick Roberts and Richard Pembroke
will remain with the company to integrate and develop the enlarged group's
products and revenues.
Commenting on the acquisition, Dan Thompson, Chief Executive Officer of 365,
said:
'Datanet share our passion for and commitment to providing market leading
multi-channel services. The combination of 365 and Datanet provides an
unparalleled range of best of class services to the end user, particularly in
the sports arena. Our expanded content offerings, and the size of our
combined audience, provide a strong platform as we continue to develop revenue
streams such as ad sales and sponsorship, first and third party e-commerce,
wireless applications and betting. We warmly welcome the Datanet team and
look forward to working with them.'
Nick Roberts, a co-founder of Datanet, added:
'We have long shared 365's strategy regarding the convergence of digital
mediums. Bringing together our companies creates a group with the breadth of
content, skills and technology to ensure we remain at the forefront of the
industry. We are excited to be part of a successful dynamic management team.'
Danny Kelly, Publishing Director of 365 added:
'I truly believe that the combination of 365's news coverage and editorial
style, and Datanet's more statistically-based products and services has
outstanding potential. This combination of skills is unique and will bring
our customers an even greater experience.'
Enquiries:
365 Corporation plc Tel: 0171 505 7800
Dan Thompson, Chief Executive Officer www.365corp.com
Financial Dynamics Tel: 0171 831 3113
Giles Sanderson
Edward Bridges
NOTES FOR EDITORS
365 Corporation plc
CURRENT CONTENT AND SERVICE OFFERINGS
Consumer
+ Sport
Football -www.football365.com and www.futbol365.com and www.football365.fr
Football content is provided on three web sites, each in a different language.
The English language site is branded Football365 and is one of the leading
football web sites in the world. Futbol365 is a Spanish language web site. In
1999 365 acquired C-Sports Communication SA, the creators of cfoot.com, a
leading French football web site, now branded www.football365.fr.
Football content is also being leveraged on a cross platform basis via
TalkFootball365, the recently launched telephone and Internet service
(www.talkfootball365.com). This service allows users to leave voice messages
for other users to respond to, to discuss football with other users and to
hear their views on news items provided from the Football365 website, which
may include the personal views of Danny Kelly and Andy Gray.
Cricket - www.cricinfo365.com
Through its joint venture with CricInfo (one of the world's largest single
sports web sites), 365 produces a daily e-mail publication - CricInfo365.
Rugby - www.rugby365.com
Rugby365 was launched in August 1999, in anticipation of the Rugby World Cup.
The service is based in South Africa and produced in four language versions
(English, French, Spanish and Afrikaans). Contributors to Rugby365 are some
of the top rugby players in the world. During the 1999 Rugby World Cup,
Rugby365 partnered with ITV to produce their Rugby World Cup site. 365
established a North American presence in December 1999 with the acquisition of
e-Merchants Inc. and the website, www.rugbyrugby.com.
+ Entertainment
Music - www.music365.com
Music365 was launched in November 1998 and provides reviews of albums and
singles, interviews with artists and personalities and topical stories. It
also provides an on-line chat forum for users to express their views on
current music issues. In addition, the web site offers on-line shopping
facilities for users to purchase concert tickets, CDs and videos. Music365
provides the content for the Freeserve Music channel and has an arrangement
with the BRITs to provide the official BRIT Awards' web site and online voting
facility.
Competitions - www.win365.co.uk
365 launched 'Win365' in September 1999, a cross-platform competition based
product.
Television
Most recently the company created a new division, 365Television. The first
production, a documentary on boxer Mike Tyson's UK fight, was commissioned by
the BBC and recently aired on BBC Choice and BBC2.
+ Lifestyle
Companionship - www.personals365.com
The primary content in the lifestyle sector is companionship. 365's lifestyle
services provide the community forum for users to socialise with other people
or establish relationships. Historically these services have been phone-
based, but in October 1999, 365 launched, as part of its convergence strategy,
Personals365, an on-line companionship product, and more recently a multi-
platform product www.theswitch.co.uk.
Advisory services
365 has an agreement with Infogenie to provide telephone-based services to
users. 365 provides telephone lines and systems and Infogenie procures the
advisory services, currently for legal services and veterinary services.
Business
The Business Division provides communication services and Internet
applications to small and medium sized enterprises in the UK and Ireland. It
aims to provide a 'one stop shop' of communications services and Internet
applications to its customers. 365 currently provides voice and data access,
telephone systems, mobiles, Internet access and related hardware. In order to
work towards national coverage, 365 has formed equity joint ventures with 12
telecom systems dealers across the UK. Under these arrangements, 365
contributes its expertise and access to its customer service and billing
infrastructure, while the dealer contributes local sales and marketing
expertise. The existing customer base of the joint venture partners provides
the initial target for 365's marketing efforts.
Datanet Marketing Services Ltd
+ Planet Rugby: http://www.planet-rugby.com
A market leading online rugby resource including breaking news, unique
statistics and world class contributors such as Stephen Jones and
Michael Lynagh
+ Racetips: http://www.racetips.com
A site dedicated to Horse Racing giving the inside track on news, form
and the horses to follow.
+ Planet F1: http://www.planet-f1.com
Unique resource for the world of Formula 1 featuring news, features and
a searchable archive of every race in F1 history.
+ Cricketline: http://www.cricketline.com
A leading site for International cricket boasting the complete
scorecards of every Test match ever played and an exclusive column from
South African legend Allan Donald
+ Planet Trivia: http://www.planet-trivia.com
A network of live, multiplayer trivia games where users can compete in
real time against anyone else in the world on a variety of topics
including television, education, history, entertainment and sport and
win prizes.
+ Sportszine UK: http://www.sportszine.co.uk
A complete guide to sport on the Internet through a searchable database
of over 40,000 individually reviewed websites.
+ Sportonair.com: http://www.sportonair.com
The UK's first dedicated sports audio website with hourly news, features
and interviews.