Acquisition of 3T, Web Design Company for £5.2M
RM PLC
13 March 2000
RM ANNOUNCES ACQUISITION OF WEB DESIGN COMPANY
RM plc (RM) the leading supplier of Information and Communications Technology
(ICT) software, services and systems to UK education, is pleased to announce
today the acquisition of 3T Productions Limited (3T), a web site design and
development company for a total consideration of up to £5.2m to be satisfied
in RM shares, loan notes and cash.
The acquisition of 3T is part of RM's investment programme in its Internet
activities. It significantly strengthens RM's ability to develop its web
activities and its strategy of developing Internet services to support
teaching and learning. RM is already the leading provider of Internet content
and services to the UK education market and its Internet for Learning (IfL)
service is the UK's leading education Internet Service Provider (ISP).
Launched in 1996, IfL connects over 10,000 schools to the Internet. RM's
Living Library online content service, containing some two million reference
articles, is now used by 35% of UK schools and the company recently launched
Window Box OnLine, an Internet content service for primary schools.
3T provides website and interactive media design and production for a wide
range of clients, primarily in the educational marketplace and has worked on a
number of projects with RM in the past. This included the creation of the
Explore Parliament educational web site. RM and 3T have recently collaborated
on the provision of bespoke Intranet services for a number of education
authorities and will add this service to RM's portfolio of Managed Content
Services. The two companies have also submitted a joint bid for the DfEE
initiative GridClub.
3T has developed ICT training needs identification software for teachers on
behalf of the Teacher Training Agency (TTA). It has also designed educational
websites and CD Roms for organisations such as the DfEE, BP, BT, BMW and the
Health Education Authority. More than 90% of 3T's output is education related
(used by pupils or teachers) and it has a long track record of producing
award-winning products. 3T is based in Stockport, Cheshire, and has 25
employees.The senior management has entered into agreements to remain with the
business over a period of up to 3 years.
In the year ended 30 September 1999, 3T made a profit before tax of £329,000
on a turnover of £1.6m. The net assets of the company at the same date were
£213,000. The consideration of up to £5.2m is made up of a combination of RM
shares, loan notes and cash as follows:
* The issue of 258,642 RM shares of £0.02 each. The vendors
have entered into an agreement not to sell 118,362 of
these shares for six months.
* Subject to 3T's profit before tax for the year to 30
September 2000 meeting financial performance targets, a
further payment of £500,000 by way of either RM shares or
loan notes from RM (at the option of RM.)
* £2,278,000 in loan notes. £841,333 is to be issued on
completion and up to £1,437,000 to be issued three years
from completion.
* The balance will be payable in cash.
Application was made to the London Stock Exchange Limited for 258,642 Ordinary
shares of 2p each ('shares') in RM plc to be admitted to the Official List and
permission was granted to admit the new shares on Friday 10 March 2000 and
dealings will commence on Monday 13 March 2000. These shares will rank pari
passu with the existing Ordinary shares.
Richard Girling, Chief Executive of RM, commenting on the acquisition, said:
'This is a really exciting acquisition for RM. It builds on our position in
the educational market place and enables us to develop complete Internet
solutions for schools and education authorities. With the growing focus on
broadband and web content, our ability to offer the best content creation and
management services is vital and in line with our long-term Internet strategy.
We will continue to look at ways in which we can strengthen our business,
particularly in offering innovative and exciting internet related products and
services to the educational market.'
Further enquiries:
Richard Girling Chief Executive RM plc 01235 825 300
Mike Greig Finance Director
Andrew Fenwick Brunswick 020 7404 5959
Katie Hall
Notes to Editors:
1.Further information on RM can be found at www.rm.com and on 3T at
www.3T.co.uk
2.RM is the leading supplier of ICT resources to UK education, providing
educational software, services and systems to primary schools, secondary
schools, colleges and universities. RM's products offer the most widely
accepted and used IT standards to UK education and are designed to support
teaching and learning right across the curriculum. They offer pupils the
opportunity to benefit from the National Grid for Learning and to make the
most of the exciting inclusion of ICT in their curriculum while also providing
teachers with easy to use secure technology. A number of RM's products are
now also being adopted in educational establishments overseas.
3.3T has over 17 years' experience in the development of interactive software
and multimedia for the education and training markets. The range of titles
produced by the company includes well known products particularly in the
educational market. These include Explore Parliament, ICT Needs
Identification, The Green Code Programme for Schools, Spot's Busy Day,
Practising Leadership and BP Climate Change CD Rom.
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