Computer Software Group PLC
04 January 2005
COMPUTER SOFTWARE GROUP PLC
ACQUISITION OF ALVESTON HOLDINGS LIMITED (TRADING AS SYSTEMS TEAM)
The Board of Computer Software Group plc ("CSG" or the "Company" or the "Group")
is pleased to announce that it has acquired the whole of the issued share
capital of Alveston Holdings Limited ("Alveston" trading as "Systems Team") for
a consideration of £4,800,000 to be satisfied by a deferred cash payment of
£1,650,000 and the issue of 5,431,034 consideration shares.
BACKGROUND TO, AND REASONS FOR, THE ACQUISITION
The Company was admitted to trading on AIM in August 2000. Its main activity at
that time was the provision of cross-industry integrated software solutions on
an IBM iSeries platform. In the period since flotation, CSG has grown by careful
acquisition and now comprises three divisions covering Business Service
solutions, Field Service solutions and Not For Profit solutions.
Bristol-based Systems Team was established in 1982 and is a significant supplier
of business solutions to the Membership and Charities sector in the United
The acquisition of Systems Team will consolidate the Group's position as a major
player in the Not For Profit sector and the enlarged customer base will provide
opportunities for cross-selling not currently available to the Group.
The latest consolidated accounts for Alveston, for the year ended 31 May 2004,
show a turnover of £3,300,000 and a net profit before tax for the year of
TERMS OF THE ACQUISITION
The Company has entered into a share purchase agreement with the Vendors to
acquire the whole of the issued share capital of Alveston. The consideration for
the acquisition will be satisfied in full by the issue on completion, credited
as fully paid in the sum of 58p per share, of the consideration shares,
comprising 5,431,034 ordinary shares, together with a cash payment of £1,650,000
agreed to be deferred until 28 February 2005.
The issue of the Consideration Shares will result in the Vendors holding 10.99%
of the enlarged issued share capital of the Company.
Following the acquisition, the vendors, Geoffrey Iles (currently Managing
Director) and Colin Black (currently Finance Director) will continue to manage
the day to day operations and will assist with the integration of Systems Team
into the Group's Not For Profit division.
Geoffrey Iles, 55, was a founding director of Systems Team in 1983 and has held
various senior technical and sales roles since that date, becoming Managing
Director in 1986.
Colin Black, 50, joined Systems Team in 1985 as Finance Director and has also
been closely involved with acquisitions, business development and project
Application has been made for the admission of the consideration shares to
trading on AIM and dealings are expected to commence on 7 January 2005.
Computer Software Group plc 020 8879 3939
Vin Murria / Barbara Firth
Seymour Pierce ltd 020 7107 8000
This information is provided by RNS
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