RM PLC
21 May 2007
21 May 2006
RM acquires specialist education resources provider DACTA ltd
RM announces the acquisition of DACTA ltd for a consideration of up to
£3.99million. DACTA supplies branded learning products to educational
establishments through a Europe-wide network of dealers. The acquisition further
enhances RM's Education Resources business; broadens the range of products RM
provides to existing customers; and provides RM with an education dealer channel
in mainland Europe.
DACTA is the European distributor for LEGO Education. LEGO is a well respected
brand, with a long and successful history of developing learning resources for
children. These include control and technology products, which are widely used
by schools throughout Europe. The DACTA management team has been involved in
developing LEGO's education strategy for many years, originally working directly
for LEGO and more recently as part of the independent business DACTA. DACTA
holds the exclusive distribution rights for LEGO Education products in the UK
and 16 other European countries.
DACTA also holds the European distribution rights for TOLO Education products
and is creating a range of educational materials that enable these products to
be used to support teaching and learning in schools. This is part of a broader
strategy of working closely with owners of high quality branded children's
products and supporting their access to the educational market
Following the acquisition, DACTA will be managed as a separate entity within the
RM Group with its own product development, sales & marketing and distribution
activities, whilst benefiting from the financial and operational support of the
RM Group.
DACTA's revenue in the year to 31 December 2006 was £6.5m, with operating profit
of £570k. RM is paying an initial cash consideration of £2.28m; further cash
consideration of up to £1.71m is payable in 2010, conditional on the Directors
remaining with the business and achieving certain growth and performance
targets.
Commenting on the acquisition, Tim Pearson, CEO of RM, said:
'DACTA is a great addition to RM's Education Resources business. It's a
well-managed and profitable business, providing educational technology products
that are widely and enthusiastically used by the educational ICT community.
Equally importantly, the DACTA team shares RM's values and have achieved their
success through a passionate commitment to delivering educational value.'
Graham Farrow, Managing Director of DACTA, added:
'Over the last two and a half years DACTA has achieved substantial growth, both
in revenue and profit. However, achieving the next stage of growth - with LEGO
and with our other brand partners - will require a level of investment and
management support beyond that we could manage on our own. With RM we can grow
as part of a group that shares the educational values of both ourselves and of
LEGO, allowing us to retain the approach that has made DACTA successful.'
For further information, please contact:
Mike Greig/Phil Hemmings, RM plc 08450 700300
Mark Antelme/Raphael Mazet, Brunswick 020 7404 5959
Notes:
Founded in 1973, the RM Group is a leading provider of educational products and
services to schools, colleges & universities, local government, and central
government education departments & agencies. RM works closely with
educationalists to create new products, processes and technology which improve
teaching and learning. RM is listed on the main market of the London Stock
Exchange under the symbol RM.L.
DACTA was founded in 2004 as a specialist education distributor for LEGO. It
operates through a Europe-wide network of specialist dealers, employs 14 people
and operates from premises near Wrexham. DACTA was shortlised in four categories
in the 2007 Education Resources Awards, the UK's national awards for excellence
educational resources and materials.
The two Directors who comprise DACTA's management team are both former employees
of LEGO, having worked there in senior positions for 12 and 20 years
respectively. They left LEGO to form DACTA in 2004 with the aim of creating an
improved educational focus for LEGO's products in Europe and extending their
education development skills to other internationally-known, branded children's'
products.
This information is provided by RNS
The company news service from the London Stock Exchange
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