Fenfones Comms & Datacom Networks Acquired
365 Corporation PLC
1 March 2000
365 Corporation plc acquires Fenfones Communications Limited
and Datacom Networks Limited
365 Corporation plc ('365 Corporation' or 'the Group') announces that it has
completed the acquisition of the entire issued share capital of Fenfones
Communications Limited ('Fenfones'). Established in 1976 Fenfones is one of
the UK's leading suppliers of telephone systems and associated services to
small and medium sized enterprises ('SMEs'). At the same time 365 has
acquired the balance of the whole of the issued share capital of Datacom
Networks Limited ('Datacom'), a company in which 365 and Fenfones previously
each held 50% of the issued shares. Datacom is a provider of
telecommunications services, including voice & data calls, mobile and Internet
services to the SME market.
The total consideration for Fenfones is £4,520,000 to be satisfied as to
1,193,317 in shares of 365 Corporation and £2,020,000 in cash. The
consideration will be adjusted to the extent that completion accounts indicate
there are net current liabilities or net liabilities of Fenfones at
completion. According to unaudited management accounts of Fenfones, as at 31
December 1999 Fenfones had net assets of £195,856, produced turnover of
£2,710,180 and made a post-tax profit of £59,052 in respect of the year ended
31 December 1999. The consideration for Datacom is £500,000 in cash,
satisfied in full at completion.
The acquisition of Fenfones will add around 2,000 active accounts to 365's
Business Services Division that, as at January 2000, had 2,592 active
accounts. Fenfones will be provided with funding to actively market 365's
portfolio of business services to its 2,000 accounts. Datacom owns 365's
business Internet product, Net@Work, which provides email access, domain name
registration, website hosting, web design and e-commerce solutions.
The current directors of Fenfones will join 365's Business Services management
team. Stephen Richardson will be in charge of business Internet services and
Paul McGeary will take charge of the Group's telephone system division.
Commenting on the acquisition, Dan Thompson, Chief Executive Officer of 365
said:
'365's Business Services Division has been highly successful over the last two
years in establishing a strong position as a provider of fixed line, mobile
and internet services to the SME market. Datacom, our joint venture with
Fenfones, has been part of that success - in particular with the introduction
of the Net@work product.
'365's strategy is to build aggressively from this position of strength in
terms of the number of customer accounts we service and the products we
provide to these customers. In line with this strategy we expect to make
further acquisitions and forge further key partnerships in the business
telecom, mobile and Internet sector both in the UK and Europe.'
Stephen Richardson, Managing Director of Fenfones, added:
'We are looking forward to working with 365 and using their resources to offer
more SME businesses a no-nonsense, easy-to-understand solution for all their
telecom, mobile, e-mail and Internet needs.'
Enquiries:
365 Corporation plc Tel: 01442 28 33 00
Martin Turner, Finance Director
Mark Jones, Managing Director 365 Business Services www.365corp.com
Financial Dynamics Tel: 0171 831 3113
Giles Sanderson
Fiona Meiklejohn
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.
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
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.
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: www.racetips.com.
A site dedicated to Horse Racing giving the inside track on news, form and the
horses to follow.
Planet F1: 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.
Sportszine UK: 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: www.sportonair.com
The UK's first dedicated sports audio website with hourly news, features and
interviews.
+ 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.
Planet Trivia: 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.
+ 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
In February 2000, 365 Corporation acquired 100% of Datanet Marketing Services
Ltd.
Datanet, 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 which it has brought to the 365 stable of sites. Datanet
has content distribution deals with a number of the leading portals and ISPs
and is producing the software and technology to deliver its content across
multiple platforms.
BT Cellnet and Genie Internet
In February 2000, 365 Corporation announced a deal to provide content to BT
Cellnet's Genie Internet.
BT Cellnet is the Mobile Internet market leader and currently has over 7
million customers using its voice services and over 500,000 mobile Internet
users
BT Cellnet is leading the industry by re-focusing itself into three businesses
- a voice business, a high-speed data business focused on GPRS and a Mobile
Internet business based around Genie Internet (www.genie.co.uk), the UK's
first Mobile Internet Service Provider launched in March 1999.
In January 2000, Genie Internet launched the UK's first fully operational
commercially available WAP services and its Infotouch and Mmail data services
- the first mobile Internet services available to all digital customers based
on existing SMS text messaging - with 86 million SMS messages sent over the
BT Cellnet network in January 2000 alone.
BT Cellnet is a wholly owned subsidiary of British Telecommunications Plc