Calyx Group PLC
01 March 2006
FOR IMMEDIATE RELEASE 1 March 2006
Calyx Group plc
('Calyx')
Calyx completes its largest acquisition to date and acquires Ireland's leading
IT security specialist
Calyx, the largest single-source providers of information and communication
technology ('ICT') network solutions throughout Ireland, today announces the
acquisition of Entropy Ltd ('Entropy'), the Dublin based IT security specialist
for a total consideration of €4.95million (£3.37 million) through cash and
shares.
The initial consideration of €4 million comprises of €2.98 million (£2.03
million) in cash and 1.06 million ordinary shares of €0.10 each (valued at €1.02
million (£0.69 million) based on yesterday's closing price of 65.5p). Management
will be locked in for 12 months post the acquisition. Further deferred
consideration of up to €0.95 million (£0.65 million) is payable again in cash
and shares upon the achievement of specific performance criteria 12 months from
the date of the acquisition.
Established in 1993, Entropy is Ireland's leading IT security specialist and
delivers security solutions that help clients across all industries secure their
business assets. From design and implementation to support and management,
Entropy provides a single point of contact for securing complex networks.
Entropy has existing partnerships with top security providers including
Microsoft, Nokia, Trend Micro, Websense, Check Point, IronPort and RSA Security.
As companies in the UK and Ireland adopt a 'zero tolerance' approach to the
security and integration of their I.T. networks and infrastructures, their
requirements for outside services and support are becoming more sophisticated
and demanding. In addition the incorporation of best practice guidelines and
I.T. governance frameworks, such as BS7799, have created a growing market for
focused skilled companies such as Entropy. The combination of Entropy's
capability and the existing Calyx resource has created a very significant
presence in the UK and Irish security services sector.
Entropy's current customer base covers all industry sectors including: retail,
investment, pharmaceutical, leisure, transport and local authority, and include
Waterford Crystal; the Grafton Group - the UK-listed building and plumbing
merchants; Zurich Capital Markets - one of the premier alternative asset
management firms; United Drug - one of the largest pharmaceutical wholesalers in
Ireland; and the Department of the Environment Heritage and Local Government -
the Irish government department.
For the year ended 31 December 2005 Entropy had audited revenues of €6.25
million (£4.25 million) with profit before tax of €0.59 million (£0.4 million),
cash in the bank of €1.1 million (£0.75 million), and net assets of €1.1 million
(£0.75 million). Conall Lavery current Entropy Managing Director will remain
Managing Director of the division.
Maurice Healy, Chief Executive of Calyx, commenting on the acquisition said;
'I am excited to announce this, our largest acquisition so far, as the addition
of Entropy to the Calyx group enhances our existing capability and expertise in
the security solutions arena. It also takes us closer to our goal of becoming
one of the largest providers of specialist ICT infrastructure services in the UK
and Ireland. Our customers are now demanding scale and reach from their trusted
partners and Calyx is at the forefront of this market as it continues to
consolidate.
We are pleased to confirm that the current Managing Director of Entropy, Conall
Lavery, will remain Managing Director of the division and expect the acquisition
to be immediately earnings enhancing. Furthermore, this acquisition remains in
line with our strategic objectives as set out back in March 2005 when we floated
on AIM.'
Calyx will be announcing its preliminary results for the year ended December
2005 on Monday 6 March, there will be a presentation at 09:30am at the offices
of Buchanan Communications.
For further details please contact:
Calyx Group plc
Maurice Healy, Chief Executive Tel: +353 1 676 3363
Buchanan Communications
Tim Thompson / James Strong Tel: +44 (0)20 7466 5000
NOTES TO EDITORS
About Calyx - Calyx is the largest single-source provider of information and
communication technology ('ICT') network solutions throughout Ireland and
includes the largest technical training operation in Ireland. Calyx is
headquartered in Cork, but has offices in Dublin, Limerick and Swindon. This is
the 4 acquisition Calyx has completed since its flotation on AIM back in March
2005.
Amounts in this document expressed in pounds sterling or equivalent amounts
stated in Euros have, unless otherwise stated, been calculated using a rate of
£1:€1.47.
This information is provided by RNS
The company news service from the London Stock Exchange
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