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Knowledge Technology (ARC)

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Tuesday 07 August, 2007

Knowledge Technology


Knowledge Technology Solutions PLC
07 August 2007

Embargoed RNS Release                                              7 August 2007

     Knowledge Technology Solutions Plc ('KTS', 'the Company', 'the Group')

                 Acquisition of Arcontech Limited ('Arcontech')

KTS, a provider of professional market information services in the finance
sector, announces that it has exchanged a conditional contract for the
acquisition of the entire issued share capital of Arcontech Limited for a
maximum consideration of approximately £1.5 million.

The acquisition of Arcontech is in line with KTS' stated strategy to complement
organic growth with selective acquisitions. It will provide KTS with a product
set which is entirely complementary to its existing display application
technology and the combined group will benefit from a substantially enlarged
customer base.

The initial consideration will be satisfied with net cash of £700,000 and the
issue of 45 million ordinary shares in KTS. In addition, deferred consideration
capped at £300,000 is payable in cash or shares if Arcontech achieves turnover
over £1.2 million and up to £2.2 million in the 12 month period immediately
following the completion of the acquisition.

Completion of the acquisition is conditional on the Company completing an EIS/
VCT qualifying placing of new ordinary shares, the proceeds of which will enable
the Company to provide working capital for the enlarged group.

Arcontech is an award winning specialist software company, founded in 1979,
specialising in middleware solutions for real time publishing, distribution and
aggregation of financial data, which can be integrated into any software
platform. It has strong and contractual relationships with a broad base of blue
chip customers including major investment banks, data vendors and leading spread
betting and Contracts For Difference (CFD) brokerages. In its last audited
accounts to 31 July 2006 Arcontech generated profits before tax of approximately
£181,000 on turnover of £982,000 and as at 31 July 2006 it had net assets of

It is intended that Arcontech will be fully integrated into KTS' London offices,
which will provide some annualised cost savings. Mr Andrew Miller, who is
currently a director of Arcontech, will join the board of directors of KTS on
completion as an Executive Director.

KTS Chief Executive Dr Marc Pinter-Krainer, commenting on the acquisition, said:

'In an increasingly sophisticated market which has strong drivers, not least The
MiFiD regulatory changes, the combination of the two businesses will provide a
compelling offering and opportunities to cross sell our combined product sets to
an enlarged customer base.'

For further enquiries:

Knowledge Technology Solutions Plc
Dr Marc Pinter-Krainer, Chief Executive Officer              0207 256 2300

Blue Oar Securities Plc
Mike Coe / Marc Davies                                       0117 933 0020

Katie Hunt / Will Henderson                                  0207 360 4900

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