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Nasstar acquires Kamanchi Limited

By BFN News | 07:44 AM | Thursday 24 July, 2014

Nasstar, a provider of Hosted Desktop cloud computing, confirms the acquisition of the entire issued share capital of Kamanchi Limited, a specialist IT outsourcer and Hosted Desktop provider in the recruitment sector, for a consideration of £2.5m. The acquisition is expected to be immediately earnings enhancing. Of the £2.5m consideration, £1.5m will be payable in cash, and £1m in new Nasstar Ordinary Shares. As a result, Nasstar has agreed to issue (conditionally only on Admission as defined below) 12,484,394 Ordinary Shares at 8.01 pence per share to the vendors of Kamanchi. The Kamanchi vendors are Kevin Winfield and Raymond Pennie. All the new Ordinary Shares will be locked in for a period of six months with orderly marketing provisions for a further six months thereafter. Application has been made for the new Ordinary Shares to be admitted to trading on AIM ("Admission"). Admission is expected to occur today. The new Ordinary Shares rank parri passu with the existing issued ordinary share capital. Immediately following Admission there will be 366,444,447 Ordinary Shares of 1p each in issue. The cash element of the total consideration will be paid as to £500,000 on 24 July 2014 with deferred consideration of £1,000,000 being paid on 14 October 2014 subject to confirmation of Kamanchi's net profit in completion accounts for the year ended 30 June 2014. The cash element of the deferred consideration may be adjusted downwards if Kamanchi's net profit as derived from the completion accounts is below an agreed amount. Story provided by

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