Acquisition of 3T, Web Design Company for £5.2M

RM PLC 13 March 2000 RM ANNOUNCES ACQUISITION OF WEB DESIGN COMPANY RM plc (RM) the leading supplier of Information and Communications Technology (ICT) software, services and systems to UK education, is pleased to announce today the acquisition of 3T Productions Limited (3T), a web site design and development company for a total consideration of up to £5.2m to be satisfied in RM shares, loan notes and cash. The acquisition of 3T is part of RM's investment programme in its Internet activities. It significantly strengthens RM's ability to develop its web activities and its strategy of developing Internet services to support teaching and learning. RM is already the leading provider of Internet content and services to the UK education market and its Internet for Learning (IfL) service is the UK's leading education Internet Service Provider (ISP). Launched in 1996, IfL connects over 10,000 schools to the Internet. RM's Living Library online content service, containing some two million reference articles, is now used by 35% of UK schools and the company recently launched Window Box OnLine, an Internet content service for primary schools. 3T provides website and interactive media design and production for a wide range of clients, primarily in the educational marketplace and has worked on a number of projects with RM in the past. This included the creation of the Explore Parliament educational web site. RM and 3T have recently collaborated on the provision of bespoke Intranet services for a number of education authorities and will add this service to RM's portfolio of Managed Content Services. The two companies have also submitted a joint bid for the DfEE initiative GridClub. 3T has developed ICT training needs identification software for teachers on behalf of the Teacher Training Agency (TTA). It has also designed educational websites and CD Roms for organisations such as the DfEE, BP, BT, BMW and the Health Education Authority. More than 90% of 3T's output is education related (used by pupils or teachers) and it has a long track record of producing award-winning products. 3T is based in Stockport, Cheshire, and has 25 employees.The senior management has entered into agreements to remain with the business over a period of up to 3 years. In the year ended 30 September 1999, 3T made a profit before tax of £329,000 on a turnover of £1.6m. The net assets of the company at the same date were £213,000. The consideration of up to £5.2m is made up of a combination of RM shares, loan notes and cash as follows: * The issue of 258,642 RM shares of £0.02 each. The vendors have entered into an agreement not to sell 118,362 of these shares for six months. * Subject to 3T's profit before tax for the year to 30 September 2000 meeting financial performance targets, a further payment of £500,000 by way of either RM shares or loan notes from RM (at the option of RM.) * £2,278,000 in loan notes. £841,333 is to be issued on completion and up to £1,437,000 to be issued three years from completion. * The balance will be payable in cash. Application was made to the London Stock Exchange Limited for 258,642 Ordinary shares of 2p each ('shares') in RM plc to be admitted to the Official List and permission was granted to admit the new shares on Friday 10 March 2000 and dealings will commence on Monday 13 March 2000. These shares will rank pari passu with the existing Ordinary shares. Richard Girling, Chief Executive of RM, commenting on the acquisition, said: 'This is a really exciting acquisition for RM. It builds on our position in the educational market place and enables us to develop complete Internet solutions for schools and education authorities. With the growing focus on broadband and web content, our ability to offer the best content creation and management services is vital and in line with our long-term Internet strategy. We will continue to look at ways in which we can strengthen our business, particularly in offering innovative and exciting internet related products and services to the educational market.' Further enquiries: Richard Girling Chief Executive RM plc 01235 825 300 Mike Greig Finance Director Andrew Fenwick Brunswick 020 7404 5959 Katie Hall Notes to Editors: 1.Further information on RM can be found at www.rm.com and on 3T at www.3T.co.uk 2.RM is the leading supplier of ICT resources to UK education, providing educational software, services and systems to primary schools, secondary schools, colleges and universities. RM's products offer the most widely accepted and used IT standards to UK education and are designed to support teaching and learning right across the curriculum. They offer pupils the opportunity to benefit from the National Grid for Learning and to make the most of the exciting inclusion of ICT in their curriculum while also providing teachers with easy to use secure technology. A number of RM's products are now also being adopted in educational establishments overseas. 3.3T has over 17 years' experience in the development of interactive software and multimedia for the education and training markets. The range of titles produced by the company includes well known products particularly in the educational market. These include Explore Parliament, ICT Needs Identification, The Green Code Programme for Schools, Spot's Busy Day, Practising Leadership and BP Climate Change CD Rom.

Companies

RM (RM.)
UK 100

Latest directors dealings