Mission Testing PLC
28 August 2001
Embargoed until 7.00 am 28 August 2001
Mission Testing plc
('Mission Testing' or the 'Company')
Acquisition of Specialist Testing Solutions Ltd ('STS') for £3.7 million
Mission Testing plc, the AIM-listed software testing consultancy and services
provider, is pleased to announce that it has acquired the entire issued share
capital of Specialist Testing Solutions Limited, a private UK based software
testing consultancy, for an aggregate consideration of £3.7 million (the
'Acquisition').
For the year ended 31 December 2000, STS reported revenue of £1.2m and profit
before tax of £190,548 and had net assets of £80,507. The Directors of Mission
Testing believe that the Acquisition will be earnings enhancing for the
Company in the year ending 30 June 2002.
The Acquisition is in line with Mission Testing's stated strategy of enhancing
organic growth through selective, complementary acquisitions. It is the
Company's ambition to be the leading consolidator within the industry.
Information about STS
STS is a rapidly growing UK-based software testing consultancy business
employing 43 staff, including 32 skilled software testing consultants. Client
projects range from testing retail and investment banking systems through to
quality assurance of e-government programmes. STS also has specific strengths
in performance testing and has developed proprietary software to streamline
the execution and analysis of results when testing the performance capacity
and response times of large internet-enabled or legacy systems.
The three Directors (who are also the shareholders) of STS have many years
experience of planning and managing large software testing programmes and will
remain with the business.
The clients and staff of STS are a highly complementary fit with Mission
Testing's own strong client base and capabilities and the Directors of Mission
Testing will quickly integrate STS within Mission Testing's trading
subsidiary, Mission Testing Europe Limited. STS's Manchester office is a
strategic geographic addition to Mission Testing's offices in Gatwick and the
City and will be used immediately to give local support to a major financial
services organisation that has recently engaged Mission Testing.
The Consideration
The consideration is to be satisfied by a payment of £700,000 in cash on
completion with the balance being settled by the issue of a total of 1.6
million new ordinary Mission Testing shares (the 'New Shares'). Of these
shares, 1,350,000 were issued on completion (the 'Initial Shares') and the
remainder will be issued following the Company's AGM this year (the 'Deferred
Shares') .The New Shares, which will rank pari passu in all respects with the
existing issued shares, will be subject to lock-in arrangements up to the
publication of the Company's interim results for the 6 months ended 31
December 2002.
Application will be made for the New Shares to be admitted to trading on AIM.
Trading is expected to commence in the Initial Shares on 4 September 2001 and
in the Deferred Shares after the Company's 2001 AGM.
Tony Wells, Mission Testing's Chief Executive, said:
'The market for software testing continues to present substantial
opportunities for Mission Testing to supply organisations who increasingly
recognise the benefits of utilising an independent testing consultancy. The
acquisition of STS is the first step of the Group's stated strategy at the
time of flotation: to accelerate organic growth plans and selectively
consolidate first class businesses in this tremendously exciting, yet highly
fragmented global market.'
Mission Testing is due to announce its preliminary results for the year ended
30 June 2001 on Monday, 17 September 2001.
For further information please contact:
Mission Testing plc 01293 457123
Tony Wells, Chief Executive
www.missiontesting.com
Square Mile BSMG Worldwide 0207 601 1042
Edward Macquisten
Note to Editors
Mission Testing is the leading provider of specialist software testing
solutions and services for a wide range of software applications and business
sectors. The Company was admitted to AIM on 6 December 2000, raising net
proceeds of £8.8m. The Company's client base principally comprises 'blue chip'
companies in the banking and finance, technology and telecoms sectors.
Its interim results announced in March 2001 reported an 83 per cent increase
in turnover and 105 per cent increase in pretax profits.
*A Private Investor is a recipient of the information who meets all of the conditions set out below, the recipient:
Obtains access to the information in a personal capacity;
Is not required to be regulated or supervised by a body concerned with the regulation or supervision of investment or financial services;
Is not currently registered or qualified as a professional securities trader or investment adviser with any national or state exchange, regulatory authority, professional association or recognised professional body;
Does not currently act in any capacity as an investment adviser, whether or not they have at some time been qualified to do so;
Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
Please note, this site uses cookies. Some of the cookies are essential for parts of the site to operate and have already been set. You may delete and block all cookies from this site, but if you do, parts of the site may not work. To find out more about the cookies used on Investegate and how you can manage them, see our Privacy and Cookie Policy
To continue using Investegate, please confirm that you are a private investor as well as agreeing to our Privacy and Cookie Policy & Terms.