Acquisition

7th Aug 2007 07:01

Knowledge Technology Solutions PLC07 August 2007 Embargoed RNS Release 7 August 2007 Knowledge Technology Solutions Plc ("KTS", "the Company", "the Group") Acquisition of Arcontech Limited ("Arcontech") KTS, a provider of professional market information services in the financesector, announces that it has exchanged a conditional contract for theacquisition of the entire issued share capital of Arcontech Limited for amaximum consideration of approximately £1.5 million. The acquisition of Arcontech is in line with KTS' stated strategy to complementorganic growth with selective acquisitions. It will provide KTS with a productset which is entirely complementary to its existing display applicationtechnology and the combined group will benefit from a substantially enlargedcustomer base. The initial consideration will be satisfied with net cash of £700,000 and theissue of 45 million ordinary shares in KTS. In addition, deferred considerationcapped at £300,000 is payable in cash or shares if Arcontech achieves turnoverover £1.2 million and up to £2.2 million in the 12 month period immediatelyfollowing the completion of the acquisition. Completion of the acquisition is conditional on the Company completing an EIS/VCT qualifying placing of new ordinary shares, the proceeds of which will enablethe Company to provide working capital for the enlarged group. Arcontech is an award winning specialist software company, founded in 1979,specialising in middleware solutions for real time publishing, distribution andaggregation of financial data, which can be integrated into any softwareplatform. It has strong and contractual relationships with a broad base of bluechip customers including major investment banks, data vendors and leading spreadbetting and Contracts For Difference (CFD) brokerages. In its last auditedaccounts to 31 July 2006 Arcontech generated profits before tax of approximately£181,000 on turnover of £982,000 and as at 31 July 2006 it had net assets of£114,000. It is intended that Arcontech will be fully integrated into KTS' London offices,which will provide some annualised cost savings. Mr Andrew Miller, who iscurrently a director of Arcontech, will join the board of directors of KTS oncompletion as an Executive Director. KTS Chief Executive Dr Marc Pinter-Krainer, commenting on the acquisition, said: "In an increasingly sophisticated market which has strong drivers, not least TheMiFiD regulatory changes, the combination of the two businesses will provide acompelling offering and opportunities to cross sell our combined product sets toan enlarged customer base." For further enquiries: Knowledge Technology Solutions PlcDr Marc Pinter-Krainer, Chief Executive Officer 0207 256 2300 Blue Oar Securities PlcMike Coe / Marc Davies 0117 933 0020 SmithfieldKatie Hunt / Will Henderson 0207 360 4900 This information is provided by RNS The company news service from the London Stock Exchange

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Related Shares:

Arcontech Group