Acquisition
Access Intelligence PLC
06 July 2005
FOR RELEASE 7.00AM 6 JULY 2005
ACCESS INTELLIGENCE PLC
(Range of companies providing information, advice and services to small and
medium sized businesses and the public sector)
ACQUISITION OF DUE NORTH
Access Intelligence Plc ('Access' or 'Company') is pleased to announce the
acquisition of Due North Limited ('Due North'), a developer and provider of
e-commerce solutions, primarily to the public sector and emergency services. The
range of products includes an e-tendering module combined with an e-auction
module. Due North reported turnover of £695,000 and unaudited operating profits
of £213,000 for the 9 months to 31 May 2005.
The initial consideration for Due North is £1.5m, of which £1m has been paid in
cash and £500,000 has been satisfied by the issue of 4,686,034 new ordinary
shares in Access Intelligence at 10.67p per share. As at 5 July 2005, Due North
had £160,000 of net assets, including net cash balances of £100,000. Additional
consideration will be payable dependent upon the results of Due North for the 2
years ending 30 November 2007. Deferred consideration of up to £600,000 will be
paid for the year ending 30 November 2006 conditional upon operating profits
exceeding £350,000 and further deferred consideration of up to £750,000 will be
payable conditional upon operating profits in the year ending 30 November 2007
exceeding £450,000. The deferred consideration will be satisfied by the issue of
ordinary shares in Access Intelligence, although, the vendors of Due North may
instead elect to receive up to 20% of the deferred consideration in cash. We
believe the structure of the deal provides an excellent incentive for the
management of Due North to exploit the current market for e-commerce solutions
in the public sector and build up a significant recurring revenue income stream
for the Access Intelligence group.
In a relatively short space of time, Due North has established itself as a
leader in its field and it is well positioned to gain market share as the public
sector implements an e-commerce strategy. Currently over 40% of police
authorities subscribe to the service. Additionally over 7% of local authorities
and 11% of fire brigades subscribe. The company is in discussions with over 100
local authorities plus companies in the private sector. Wired Gov will work
closely with Due North to assist increased penetration within the Government
sector.
For further information:
Access Intelligence plc
Jeremy Hamer (Chairman) 01904 520840
Brendan Austin (Chief Executive) 01904 520840
Colin Davies (Finance Director) 01904 520840
Beattie Financial
Brian Coleman-Smith / Jo Clewlow 020 7053 6400
Background Note:
Following the acquisition of Due North, Access Intelligence has five operating
subsidiaries:
* The Marketing Guild, based in York, which provides marketing advice
and support to small and medium sized businesses. This is in the form of
newsletters, consultancy, lead generation and member's services.
* Wired Gov, based in Stockport, provides an online information
service delivering press releases from over 100 government and public sector
bodies. Subscribers can customise the service specifying the agency or topic
they require.
* Backup and Running, based in York, provides an online data storage
and disaster recovery service, which the client can customize to their own
requirements. The service offers significant advantages over other alternative
systems in that it backs up automatically and can provide a complete backup
history for at least three years.
* Willow Starcom (Ridgeway Technologies), based in Chorley, provides
specialist IT services across a broad range of market sectors that include data
storage, backup and recovery, network design support and consultancy and
hardware and software maintenance support services. It has growing recurring
revenues from these activities of over £1million per annum.
* Due North, based in Newcastle-Upon-Tyne, is a developer and
provider of e- commerce solutions, primarily to the public sector and emergency
services. The range of products include an e-tendering module combined with an
e-auction module.
This information is provided by RNS
The company news service from the London Stock Exchange