1st Jun 2006 07:01
Applied Optical Technologies PLC01 June 2006 1st June 2006 Applied Optical Technologies plc ('the Company" or "AOT") Acquisition of GenuOne Inc. Creates a single company able to meet the brand protection needs of global brand owners in online and supply chain environments. Applied Optical Technologies plc, the supplier of high qualityanti-counterfeiting technologies and services, is pleased to announce it hasagreed to acquire GenuOne Inc, ("GenuOne") for a cash consideration of $13million (approximately £7 million). It is anticipated that the completion willtake place in mid June. GenuOne is a provider of anti-counterfeiting and anti-diversion softwareproducts which enable brand owners to monitor and protect their products andbrands across a range of online environments, including auction sites, retailand wholesale internet exchanges, and business to business boards wheresignificant sale of counterfeit products occurs. GenuOne also provides producttagging and tracking services to customers. GenuOne has 28 employees based in Boston, Massachusetts. It currently services45 major global brands including XEROX, New Balance Athletic Shoes, Intel,Cisco, Richemont Group and Dell. Its accounts for the year ended 31st December2005 showed turnover of $6.1 million and a net income of $42,000. The balancesheet at 31st December showed net liabilities of $2 million. Upon acquisition, certain liabilities of GenuOne will convert into share capitaland accordingly AOT will acquire net assets of approximately $Nil. GenuOne hassignificant tax losses which AOT expects to be able to utilise against thefuture profits of its American operations. The acquisition will be financed in part from the Group's cash resources withthe balance met from a new revolving credit facility agreed with Bank ofAmerica. The facility allows the Group to borrow up to $10 million at a variablerate equal to The Wall Street Journal LIBOR one month floating rate plus 150basis points. Any principal borrowed will be repayable within three years andwill be secured on the assets of the Company's American operations. Commenting on the acquisition Mark Turnage, Chief Executive Officer, said: "The acquisition of GenuOne is of fundamental importance to our brand protectionbusiness. "The combination of our overt and covert tracking products with GenuOne'ssoftware and tracking technologies, creates a single company able to meet theneeds of global brand owners in both the online and supply chain environments.The ability to provide this range of services is unique in the industry. "In addition to expanding the range of products supplied by the Group, theacquisition of GenuOne adds a number of global brands as customers. The crossselling opportunities between GenuOne and AOT are significant. The strongmanagement and operating team at GenuOne will enhance Group operatingmanagement." - ends - Enquiries: Applied Optical Technologies plc: 0191 417 5434Mike Angus, Finance Director:Mark Turnage, Chief Executive Oriel Securities Limited: 0207 710 7600Andrew Edwards Weber Shandwick Square Mile: 020 7067 0700Nick Oborne/Stephanie Badjonat This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
OSG.L