Acquisition

Brown (N.) Group PLC 14 August 2000 N Brown Group plc acquires Eunite N Brown Group plc, the Manchester based direct home shopping company, announces the acquisition of a majority shareholding and controlling interest in Eunite Ltd., a technology based convergence company providing e-commerce solutions. Eunite is one of the leading providers of e-commerce strategy and solutions in the developing interactive TV marketplace, and is one of the first companies in Europe to have designed and built fully functional e-commerce operations for access via pc, mobile phone, set top boxes and game consoles. Eunite has built a profitable and cutting edge business with a blue chip client base incorporating broadcasting, leisure and retail industries. With offices in Manchester and London, Eunite currently employs 75 people. It is expected to post 2000 sales of £3 million. N Brown Group's experience in customer relations management, distribution, direct marketing and fulfilment, through its Zendor.com e-fulfilment subsidiary, will complement Eunite's existing services. N Brown will acquire a 60 per cent stake for £6.8m in cash with an earn out on the remaining 40 per cent over the next three years which would, if growth targets are achieved, make the total consideration of £18.7 million. The acquisition adds further significant capabilities to Zendor.com's fulfilment strengths, completing Zendor.com's ability to provide clients with a complete end-to-end e-commerce fulfilment service. This offering includes assistance with product sourcing; warehousing; provision of call centre services; customer care and accounts support; web site preparation, hosting and development; home delivery, collection and processing of returns. The acquisition will also bring experience and expertise to benefit N Brown's core home shopping division by providing specialised support in the development of home shopping channels. Eunite's track record in applying leading edge technology for clients, enabling them to exploit new mediums in order to reach consumers across a broad spectrum of social, demographic and product areas, coupled with Zendor.com's fulfilment capabilities, offers considerable opportunities for existing customers and new customers of the two businesses. Jim Martin, Chief Executive of N Brown Group plc will become non-executive chairman of Eunite and Graham Green, IT Director will also join the board. Commenting on the acquisition, Jim Martin, Chief Executive of N Brown Group plc said: 'We are excited about the opportunities the acquisition of Eunite brings to both N Brown and Zendor.com. Eunite adds both depth and further scope to the Zendor.com proposition, through its specialised design and production skills in e-commerce, audio and video preparation, database integration and web and iTV site development. 'We believe that TV will become the natural choice for home shopping and interactive services, supplementing sophisticated web based offerings and the capability to provide a multi-platform e-commerce service will be vital as this market develops.' Chris Sheffield, Managing Director of Eunite added, ' The strategic fit between Eunite, N Brown and Zendor.com creates significant opportunities for all the businesses. There is a clear need among our client base and in the wider retail community for quality logistics, customer service and administration functions to support traditional businesses across a wide range of sectors as they develop into new technologies and mediums. This deal represents a step change for us in terms of the range of service we can offer and the opportunities open to us for developing our business. Everyone at Eunite is focused on exploiting these opportunities to the full with our new colleagues at N Brown Group plc and Zendor.com.' For further information please contact: Jim Martin N Brown Group plc Tel: 0161 236 8256 Tim Kowalski Tel: 0161 236 8256 N Brown Group plc Chris Sheffield Eunite Tel: 0161 237 4900 Gerald Gradwell/Luisa Winnett Tel: 020 7457 2345 Gavin Anderson & Company
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