Acquisition

RNS Number : 5106H

Tribal Group PLC

08 June 2017

 

08 June 2017

Tribal Group plc ("Tribal")

Acquisition of private social network Intellectual Property for education markets

Tribal Group plc is pleased to announce that it has acquired from Wambiz Limited the Intellectual Property Rights ("IPR") and exclusive distribution rights for the Wambiz private social network solution to the education markets across the UK, Australia and New Zealand. Tribal will also have the non-exclusive rights to sell the solution into Canada.

The acquisition is an important step in Tribal's product strategy, delivering a social network solution that will be integrated into its new student information framework, driving a single engagement solution for students.  

The initial consideration for the acquisition is £1.25m, with further non-contingent consideration of £289k and £485k payable at the end of years 1 and 2 respectively.

Completely at Tribal's discretion, if in years 2 to 5 Tribal decides to sell this product into schools and work based learning customers, Tribal will have to pay away 30% of net revenue from these markets to Wambiz Limited. In years 4 and 5 this pay away is capped at £625k and £525k respectively.

Wambiz Limited will be novating 34 existing customer contracts to Tribal. The asset value of these contracts and the IPR to be included in Tribal's accounts is expected to be approximately £2m. Tribal cannot accurately calculate the profit attributable to the contracts as Wambiz Limited did not allocate cost per contract.

Barbara Staruk, Managing Director Product and Development, Tribal, said:

"We are pleased to be able to fully integrate the Wambiz solution, which is already proven at education institutes in both Higher and Further Education, into our new Student Information framework and look to providing our customers with exceptional support and even more innovative solutions as we move forward." 

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For further information please contact:

Tribal Group plc	Tel: [phone]
Ian Bowles, Chief Executive
Mark Pickett, Chief Financial Officer
Weber Shandwick Financial	Tel: [phone]
Nick Oborne
Tom Jenkins
Investec Bank plc	Tel: [phone]
Rowena Murray
Sara Hale
Daniel Adams
N+1 Singer Capital Markets Limited	Tel: [phone]
Shaun Dobson

 

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