Eurostar Network Systems Ltd Acquired
Diagonal PLC
3 December 1999
DIAGONAL PLC
ACQUISITION
DIAGONAL PLC, the IT consultancy specialising in the implementation and
support of SAP software, announces the acquisition of EUROSTAR NETWORK SYSTEMS
LTD. Eurostar, now in its seventh year, is a highly respected networking
consultancy and a premier partner of Cisco Systems. Audited accounts for the
year ended 30 September 1998 show a profit before tax of £401,000 on turnover
of £4.3 million. Unaudited management accounts for the year ended 30
September 1999 reflect strong growth with profit before tax increasing to
£800,000 on turnover of £6.5 million. At completion, Eurostar had net assets
of approximately £500,000.
The initial consideration amounts to £6.4 million of which £3.2 million is
payable in cash from the Group's own resources with the balance to be
satisfied by the issue of new Diagonal ordinary shares. A deferred
consideration, to be satisfied by a further issue of shares up to a maximum
value of £2 million, will be paid, subject to Eurostar meeting certain
demanding growth and profitability targets in the six month period following
completion.
DAVE THOMPSON - Managing Director of Eurostar commented:
'The strength and depth of Diagonal's impressive client base provides a
perfect environment to accelerate the growth of Eurostar. We are delighted to
be part of a modern progressive consultancy which has a clear coherent
strategy.'
SARAH BERRY - Channel Account Manager for Cisco Systems commented:
'Eurostar have an impressive history with Cisco in the UK. They were one of
the first partners to premier and to commit totally to providing end to end
Cisco solutions. They were also one of the first partners to install a voice
over IP network, again using leading edge technology, which requires
considerable skills and expertise.'
MARK SAMUELS - Chief Executive of Diagonal commented:
'The Diagonal client base of installed SAP users in the UK is second to none
and we remain committed to the implementation and support of SAP.
The acquisition of Eurostar fits in perfectly with our strategy of creating in
the next 12 months a new group of product-led consultancies which complements
the services provided by our fast growing SAP practice. Each of these new
business areas will be highly focused, and prepared for the challenges of the
21st century. We are confident that Eurostar together with our recent
acquisition MFT, will flourish within the Diagonal Group.'
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