1st Dec 2015 09:57
LONDON (Alliance News) - Instem PLC Tuesday said it has opted to pay the outstanding deferred consideration for its acquisition of Logos Holdings Ltd early, which will result in an exceptional cost of GBP1.4 million in its 2015 results.
The healthcare IT services provider bought Logos for an initial GBP550,000 in May 2013. A further consideration of GBP4.5 million was payable based on profit targets over the following four years. To date Logos has exceeded all of these targets, Instem said, and it has thus far paid GBP3.1 million of the deferred consideration in a mix of cash and shares.
A further up to GBP1.9 million would be payable to the vendors of Logos depending on its performance in the financial years to end-April 2016 and 2017. Instem has decided following a strategic review that it is in its best interest to pay the remaining consideration at this time, and has agreed to pay a final GBP1.7 million to the vendors, of which GBP1 million will be paid through the issue of 481,928 shares.
Shares in Instem were untraded Tuesday morning. It last traded at 210.00 pence
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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