Acquisition
OMG PLC
26 July 2007
26 July 2007
OMG plc
Acquisition of Data Collection Ltd
OMG plc, Oxford Metrics Group (LSE: OMG), ('OMG' or 'the Group') the technology
group providing image understanding products for the entertainment, defence,
life science and engineering industries, announces that it has acquired Data
Collection Ltd ('DCL' or 'the Company'), one of the largest dedicated highways
surveying companies in the UK, for a total consideration of £5m, to accelerate
the growth of its Yotta 3D mapping business.
This deal comprises an initial consideration of £1,666,666 in cash, £1,666,666
in OMG shares and deferred consideration of £1,666,667 in OMG shares. The
initial cash consideration is subject to adjustment to take into account the
closing net assets position on 31 July and certain other matters. The deferred
consideration is subject to meeting minimum revenue targets of the expanded
Yotta division over the next two years. Application will be made for 2,515,878
OMG shares, comprising the initial share consideration, to be admitted to AIM,
which is expected to become effective on Wednesday 1 August 2007.
Trading since 1993, DCL provides surveying services and software for road and
footway condition management, including condition assessment surveys, asset
collection services and pavement management software to highway agencies,
infrastructure management groups and local authorities. This business has
long-term contracts and a broad set of customers, which include Mouchel Parkman,
Atkins and Cheshire, Derbyshire and Pembrokeshire County Councils. The Company
has offices in Bognor Regis and Leicester with a total of 68 employees.
The Company's unaudited financial statements for the year ended 31 May 2007 show
revenues of £3.6m, profit before tax of £0.5m, net assets of £1.4m and cash of
£0.1m. Audited financial statements for the year ended 31 May 2006 show turnover
of £3.3m and profit before tax of £0.8m. Lower profitability during the year
ended 31 May 2007 is due to an increased backlog of contracts in progress at the
year end and investments in additional resources during the year in response to
increasing demand for services. The acquisition is expected to be earnings
enhancing for OMG in the financial year ending 30 September 2008.
The operations of DCL will be integrated with OMG's Yotta division, and renamed
as Yotta DCL. OMG considers that Yotta's expertise in automated image
understanding will create additional business opportunities when combined with
DCL's operational and market expertise in highway surveying.
Nick Bolton, Chief Executive of OMG plc, said,
'Data Collection's experienced team have an in-depth understanding of the
highways surveying market and their fifteen years of highways surveying and
substantial customer base are invaluable to us. Yotta DCL can now provide the
most accurate and complete highway survey available by combining DCL's market
understanding and operational capability with Yotta's exciting vision
technology, which can map the precise location of each and every detail of the
highway.
'We believe the enlarged business will bring substantial benefits to our
existing customers as well as enable us to take advantage of the growing demand
for highly detailed information for highways management and intelligent mapping,
thereby increasing our penetration in this growing market.'
Steve Batchelor, Managing Director of DCL, commented,
'When we first met OMG, the appeal of their technology was immediate. Having
been involved in highways management all my working life, it was obvious to me
the benefit their software could bring to our market. DCL has always been about
long-term customers and high quality execution. Because we've been highways
engineers we know how important it is to have accurate survey information. By
combining OMG technology with our team's knowledge and our business's market
presence, Yotta DCL can really go places.'
ENDS
OMG plc 01865 261800
Nick Bolton, Chief Executive
Peter Wharton, Finance Director
Financial Dynamics 020 7831 3113
Juliet Clarke / Hannah Sloane
Evolution Securities (NOMAD to OMG) 020 7071 4308
Jeremy Ellis
About OMG
OMG plc (Oxford Metrics Group. LSE: OMG) is a group of technology companies
producing image understanding solutions for the entertainment, defence, life
science and engineering industries. Be it for capturing the movements of actors
(for the movie industry), sportsmen (for video games or improving team
performance), children with Cerebral Palsy, rehab patients and animals (for
medical, life science and research industries) or virtual reality displays (for
engineering and development), the Group has the world leading market position
and a strong international reputation for precision instruments.
Founded in 1984, the Group's headquarters are in Oxford, UK, and it has offices
in California and Colorado, USA. It has customers in over 50 countries and is a
quoted company listed on AIM, a market operated by the London Stock Exchange.
The Group trades through three operating subsidiaries - Vicon, the world's
biggest motion capture and movement analysis company, 2d3, a manufacturer of
specialised image understanding software for entertainment and defence
applications and Yotta, our 3D mapping business.
Oxford Metrics' global clients in science, medicine, sport, engineering, gaming,
film and broadcast include major hospitals and research facilities such as Guy's
Hospital, Nuffield Orthopaedic Centre and Loughborough University, engineering
industry leaders including Ford Motor Company, BMW, Airbus, Caterpillar, and
Toyota, and in the entertainment sector, Sony, Industrial Light and Magic, The
Moving Picture Company (MPC), Sega, Nintendo, UbiSoft, EA, Square Enix and many
others.
For more information about OMG and its subsidiaries, visit www.omg3d.com,
www.vicon.com, www.2d3.com or www.yotta.tv
About Yotta
Launched in 2007, Yotta is the new name for Geospatial Vision. Yotta is
transforming the way we map the world, thanks to the intelligent use of GPS
technology and highly sophisticated cameras. Our technology earned its stripes
in the motion capture and match moving sectors where it is the market leader and
has won many prestigious awards. Yotta captures street-level images and
automatically extracts the precise locations of street signs, traffic lights,
road markings, drainage points and every other aspect of roadside information
while simultaneously identifying them.
Yotta is changing the way we look at the world around us by extracting tiny
details from massive datasets - Yotta mapping the world one pixel at a time.
About Data Collection Limited
Data Collection Limited is a specialist surveying and software company for road
and footway condition management. The company provides condition assessment
surveys, asset collection services and UKPMS compliant software to Highway
Authorities.
This information is provided by RNS
The company news service from the London Stock Exchange