Tern Plc : Acquisition

24 June 2016

Tern Plc

(AIM: TERN)

Acquisition of Flexiant Limited

Further to the announcement of 9 June, Tern Plc ("Tern" or the "Company"), the investment company specialising in the cloud and mobile sectors, is pleased to announce that it has successfully completed the acquisition of the assets and businesses of the Research and Multi Cloud Management divisions of Flexiant Limited ("Flexiant"). We partnered with Flexiscale Technology Limited, which acquired the remaining FCO business unit, in this transaction.  The businesses and assets were acquired from Administrators appointed to sell Flexiant when the acquisition previously announced on 26 May 2016 failed to proceed, for £75,000 payable in cash. 

Based on Flexiant's 2014 statutory accounts, the assets acquired by Tern were valued at approximately £20,000. 

Tern's stated objective is to act as a catalyst to add value to technology businesses it acquires by commercial involvement.  The directors believe this opportunity brings underexploited assets, providing the potential for material value growth.

This acquisition is in line with the Company's strategy of focusing on making investments in companies with proven products, an existing customer and global market potential.  Tern now has controlling interests in three businesses.

Angus Forrest, Chairman, said:  "We are pleased to have acquired these assets as we perceive the greatest value can be obtained by splitting Flexiant into three business units.  There was interest from major corporate buyers in acquiring Flexiant Ltd.  We will concentrate on driving the commercialisation process following which we expect to achieve significant returns."

Tern's investment in Flexiant was valued at £269,270 in its audited accounts for the year ended 31 December 2015 against which full provision has been made.

Tern plc	Tel: [phone]
Angus Forrest
WH Ireland NOMAD and Broker	Tel: [phone]
John Wakefield
Peterhouse Corporate Finance (Joint broker)	Tel: [phone]
Lucy Williams / Duncan Vasey

Enquiries:

About Tern:

Tern Plc acquires and invests in privately owned companies with self-owned IP, established products and customer bases. Its investment strategy is focused on taking an active role in its investee companies in order to improve the business model, accelerate growth, expand the business globally, and identify exit opportunities.

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Source: Tern Plc via Globenewswire

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