Ingenta PLC
2 October 2000
INGENTA PLC
INGENTA ACQUIRES DYNAMIC DIAGRAMS
AND UNDERTAKES £7M PLACING
LONDON, October 2, 2000 - ingenta plc ('ingenta'), the global
research gateway, today announced that it has acquired Dynamic
Diagrams, the online journal and website development operations
of Cadmus Communications Corporation Inc. ('Cadmus'). Dynamic
Diagrams, with operations in Providence (Rhode Island),
Baltimore (Maryland), and London provides data conversion,
software and online content development services to some of the
leading journal and reference publishers in the US including
two of the top medical societies and McGraw-Hill.
Under the terms of the agreement, ingenta is acquiring the
assets of Dynamic Diagrams. The consideration payable by
ingenta is equivalent to the net asset value of the assets
acquired, up to a maximum of $5.5million, subject to a
completion audit. The business acquired generated $3.4million
of turnover in the year to 30 June 2000 and on a pro forma
basis, adjusting to remove overheads not being acquired,
generated an EBITDA loss of $1.1million. Following
reorganisation, the business is expected to be profitable from
acquisition.
To fund the acquisition and associated reorganisation costs and
to provide working capital for further growth for the
acquisition, Old Mutual Securities is placing 2.5 million new
ordinary shares of 5p each in ingenta at a price of 280p per
share, raising £6.7 million net of commissions and expenses.
'This acquisition accelerates ingenta's strategy in the United
States of providing online services and e-communities for
societies and other publishers of research and reference
information', stated Mark Rowse, CEO of ingenta. 'Dynamic
Diagrams' skill set complements ingenta's in every area and
its technology capability is evidenced by its portfolio of
world renowned clients: as well servicing academic and
research organisations it also provides information
architecture and design services to the American Association
for the Advancement of Science and global technology companies
such as Samsung Electronics and AOL/Netscape.'
Continuing, Mr. Rowse said 'With this acquisition, ingenta can
extend its range of services which help publishers to host and
serve their material online, create e-communities around
special interests and reach end users over the Web. In
particular, the acquisition provides ingenta with technical
capacity in the US to manage increasing demand for its
services. The web hosting operations being acquired generate
around 1 million unique visits per month, increasing ingenta's
traffic by over 50 per cent.'
Bruce Thomas, CEO of Cadmus, commented: 'Cadmus has made the
strategic decision to concentrate its developmental energies
and resources on the creation and implementation of an
integrated electronic publishing system - a web-based,
modularized system that will permit our Scientific Technical
and Medical (STM) publishing customers to lead the movement
toward much earlier and more article-based publishing both in
print and on-line. We are pleased that ingenta will continue
and enhance the services that Dynamic Diagrams historically has
provided to our many valued customers.'
About ingenta
ingenta is the global research gateway serving the online
information needs of over 1.4 million visitors a month. It
provides a free online search service of published content from
reliable research sources not freely searchable elsewhere on the
Web and is one of the UK's top 20 Web services. For publishers of
professional and academic periodicals and journals, it provides a
suite of services including data conversion, secure online hosting
and distribution of this material to subscribers and pay-per-view
customers.
As well as providing Web users with a broad based article
search and delivery service through www.ingenta.com, ingenta
also develops subject-focused e-communities, built in
conjunction with societies, publishers and university presses.
In March 2000 ingenta merged with the UnCover Company and in
May 2000 it became listed on the AIM market of the London Stock
Exchange. In June 2000 it acquired Publisher's Communication
Group (PCG).
LINKS:
http://www.ingenta.com
http://www.pcgplus.com
http://www.dynamicdiagrams.com
CONTACTS:
Edward Macquisten/ Mark Rowse David Callcott
Jane Hurley CEO Finance Director
Golin/Harris Ludgate ingenta ingenta
0207 253 2252 01865 314800 01225 361020
emacquisten@golinharris.com mrowse@ingenta.com dcallcott@ingenta.com
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