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Monday 13 March, 2006

Computer Software

Acquisition

Computer Software Group PLC
13 March 2006


13 March 2006


                          Computer Software Group plc

                 Acquisition of Care Business Solutions Limited


Introduction


Computer Software Group plc, ("CS Group" or the "Company"), the AIM-listed niche
IT software consolidator, is pleased to announce that it has acquired the whole
of the issued share capital of Care Business Solutions Limited ("CBS") for a
total initial consideration of £2,850,000 to be satisfied in cash.   Additional
deferred consideration, estimated at a maximum of £800,000, will be settled from
the net proceeds of sale of a commercial property acquired with the business.


Background to, and reasons for, the acquisition


CS Group was admitted to AIM in August 2000 and now comprises three divisions
covering Business Services solutions, Field Service solutions and Not For Profit
solutions.


The Company has focused on building dominant positions in niche markets and has
acquired a high quality, long term customer base with significant cross-selling
opportunities.


The acquisition of CBS, the third acquisition in the Not For Profit division,
will strengthen the Company's position as the leading supplier of Not For Profit
solutions, particularly in the charities and higher education sectors, and will
broaden the product portfolio giving greater coverage of its markets and
ensuring that the best solution is offered for every customer.


CBS, based in Godalming, was established in 1986 and delivers complete business
solutions to the Not For Profit sector.  Over the past twenty years the Company
has gained an impressive list of loyal and prestigious customers including
charities such as the World Wide Fund for Nature, Cancer Research UK, the RSPCA,
Save the Children UK, Marie Curie Cancer Care, and the RSPCB, and higher
education authorities such as the London Business School and the universities of
Aston, Bristol, City, Cranfield, Exeter and London Metropolitan.

The latest audited accounts for CBS, for the year ended 31 March 2005, show
turnover of £2,653,000 which included £900,000 of recurring income and a net
loss before tax of £58,000.  CBS had net assets of £254,000.


Following the acquisition, Carrie Goodbourn, currently Business Development
Director, will assume the title and duties of Managing Director - CBS and will
manage the day to day operations of the business and its integration into the
Group.


Carrie Goodbourn (41) joined the CBS sales team in 1990 and was appointed to the
Board in 1997 with responsibility for the strategic development and growth of
the business. Carrie is well respected in the Not For Profit arena and has
forged strong relationships with key customers over many years.  She established
the early flagship customers in the charities sector, leading the implementation
team and was responsible for formalising the implementation methodology of the
business.


Commenting on today's announcement, Vin Murria, Chief Executive, said:


'I am delighted to welcome Care Business Solutions to the Group.  This
acquisition will further secure our position as the dominant player in the Not
For Profit sector, will boost our recurring revenues and provide opportunities
for increased cross-selling from the enlarged customer base.'



                                     -ends-


Further details:


Computer Software Group plc                                        020 8879 3939
Vin Murria, CEO
Barbara Firth, CFO

Financial Dynamics                                                 020 7831 3113
Giles Sanderson / Juliet Clarke / Hannah Sloane



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