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Ovum plc (OVM)

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Tuesday 12 September, 2006

Ovum plc

Acquisition & Trading Update

Ovum plc
12 September 2006

12 September

                                    Ovum plc
                                  ("the Group")
                         Acquisition and Trading Update

Ovum plc (OVM.L), a leading provider of research, advisory and consulting
services in the global Information, Communication and Technology (ICT) sector,
is pleased to announce the acquisition of "Orbys Consulting Ltd", a specialist
advisory firm in outsourcing. In addition, the company confirms that its
existing business is performing strongly and, when coupled with the contribution
from Orbys, we expect upside to the business this year and significant upside
going forward.

Orbys Consulting

Orbys is the second acquisition made by Ovum in the six months since its IPO in
March 2006. It is in line with the Group's stated growth strategy to expand the
business through the acquisition of specialist, high quality businesses as well
as through organic growth.

Established in 1993 and headquartered in the UK, Orbys is a profitable business
which generated turnover of £3.9m, of which £0.18m was profit before tax, for
the year ended 31 December 2005. There are no extraordinary items and the net
assets of the business are £0.24m. It has an impressive client base of
blue-chip, multinational companies including Boots, Deutsche Bank, Metropolitan
Police Service, Northern Foods, Sainsbury's, Syngenta, and Thorntons. It advises
these organisations about their sourcing strategy and helps them with supplier
evaluation and selection, contract negotiation and supplier management.

The acquisition of Orbys is an important strategic move for Ovum and signals an
acceleration of Ovum's move into the advisory market for large user
organisations. Orbys's expertise at the most complex level of sourcing, combined
with Ovum's in-depth understanding of the suppliers, establishes a unique base
for providing user organisations with pragmatic and relevant advice about their
sourcing strategy, supplier selection and contract negotiation and management.
Ovum intends to invest in this area, bringing to bear its expertise in both IT
Services and Telecoms, and it will look to acquire other specialist companies to
strengthen this area further.

The acquisition is for a maximum consideration of £3.64m (a maximum of £3.26m in
cash with the remainder in shares), of which £1.5m, including all of the share
element, is subject to certain revenue targets being achieved by August 2007.
The acquisition is expected to be earnings enhancing in the current and next
financial year once the integration of the business has been completed.

Trading Update

The business has performed strongly this year as indicated in the AGM statement.
Ovum is experiencing high levels of activity from existing clients and increased
inquiry levels from new customers. This, coupled with the contribution from the
acquisition of Orbys, gives us confidence to expect upside to the business for
the current year and significant upside going forward.

Chris Dines, CEO of Ovum, said:

"Trading has been strong for us since our IPO in March and we continue to see a
lot of opportunities to grow our business.

"I am delighted to be announcing our second acquisition in the past six months.
Orbys is a European leader in outsourcing with a reputation for pragmatic advice
and a first class client list. This acquisition provides excellent synergies and
sets us on the path of establishing Ovum as a key advisor at the critical
juncture between vendors and buyers.

"The outsourcing market is set for further growth and its counter-cyclical
nature means it is an excellent acquisition for the Group. Our immediate focus
will be to expand the sales of Orbys internationally but ultimately we will seek
to develop a range of unique services for our blue-chip clients. We look forward
to working with our new colleagues in developing the opportunities that can be
gained through the combination of our businesses."

Angela Wyatt, Managing Director of Orbys, said:

"We are delighted to be joining forces with Ovum. In an increasingly global
sourcing market, Ovum's geographic reach and commitment to expanding sourcing
advisory services internationally, will significantly strengthen our ability to
service existing and new Orbys clients across the world. In addition, access to
Ovum's excellent research capability, widens the scope of services that we can
offer to our clients. This is an exciting opportunity and the Orbys team look
forward to working together with the Ovum team, to continue the international
development of our strategic sourcing advisory business."


Ovum                                                          020 7551 9282
Chris Dines, Chief Executive

Orbys Consulting                                              020 7872 5525
Angela Wyatt, Managing Director

Hogarth Partnership                                           020 7357 9477
James Longfield / Barnaby Fry / Georgina Briscoe

About Orbys Consulting

Orbys is a European leader in strategic sourcing advisory services that
continues to help UK and international organisations to achieve their sourcing
objectives and obtain the best value from external sourcing arrangements. The
company boasts extensive experience of both Information Technology and Business
Process sourcing arrangements. Orbys helps clients to get the right sourcing
solution for competitive advantage and risk avoidance and then ensure that it
delivers the maximum possible value.

About Ovum

Ovum's primary activity is providing value-added advisory services and
consulting to retained and project clients. The Company acts as a well respected
and trusted source of industry data, knowledge and expertise on the commercial
impact of technology, regulatory and market changes. Ovum engages in continuous
research and industry analysis to determine market dynamics in its specialist

Ovum has developed long-standing relationships with many of its corporate
clients, which include major international blue-chip companies such as: Alcatel,
AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telecom, Fujitsu, HP, IBM,
Microsoft, Telstra and Vodafone.

                      This information is provided by RNS
            The company news service from the London Stock Exchange


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