RM PLC
27 February 2004
RM acquires network software developer Sentinel Products
RM plc, the leading supplier of ICT services to UK educational establishments,
announces the acquisition of Sentinel Products Ltd, the developer and
distributor of the Ranger suite of educational network management tools, for a
maximum consideration of up to £6.1 million.
Ranger provides a set of tools and utilities designed to support network
managers and technicians who want to have detailed involvement in configuring
and managing their establishment's network. It is distributed through a
well-developed national network of dealers and value-added resellers and is in
use in approximately 1,000 UK schools and colleges. The Ranger product range is
complementary to Community Connect, RM's market-leading education enterprise
network solution, and will allow the Group to address the needs of an increased
proportion of the educational ICT market.
Sentinel Product's turnover in the year to 30th September 2003 was £1.39
million, with profit before tax of £0.45 million. RM will pay an initial
consideration of £4.3 million in cash (subject to the business having net assets
of £0.1 million on completion). The deferred consideration of up to £1.8
million will be payable over two years in loan notes, conditional on the
achievement of product development and sales targets.
Following the acquisition, Sentinel will be managed as a separate entity within
the RM Group, with its own product development team and sales channel. Under
the terms of the acquisition, Sentinel's Directors have agreed to remain with
the business for at least two years to further develop the Ranger product.
Commenting on the acquisition, Tim Pearson, CEO of RM, said:
'The acquisition of Sentinel Products adds another well-regarded educational
brand to the RM Group, builds our intellectual property ownership and gives
access to an effective indirect sales channel. As with the acquisition of
Softease in 2001, Sentinel will broaden RM's product range, enhance our routes
to market and provide a platform for future product development.'
- Ends -
For further information, please contact:
Mike Greig/Phil Hemmings, RM plc 08709 200200
Fiona Laffan/Mark Antelme, Brunswick 020 7404 5959
Notes to Editors:
1. Sentinel Products Limited was formed in 1997 and today employs 12
people. It is based in Horsham, West Sussex.
2. The Ranger Product Suite provides add-on functionality to an industry
standard PC network. It is typically used in education establishments with
relatively small and simple networks and technicians who take a relatively high
level of responsibility for network configuration and management. It is sold as
a 'boxed' software product either for installation by the end user or by a
dealer or value-added reseller.
3. Community Connect and Ranger will continue to be developed as separate
product ranges following the acquisition.
4. Community Connect is installed in approximately 3,500 UK educational
establishments.
5. RM acquired Softease in October 2001 for £5 million. Softease's Textease
product range has continued to be a highly successful branded software package
in the education market, as well as providing core technology that has been used
in other RM Group products.
This information is provided by RNS
The company news service from the London Stock Exchange
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