Acquisition of KnowledgeCenter business & assets

Charles Taylor plc

Acquisition of the business and assets of KnowledgeCenter Ltd

Charles Taylor plc (LSE: CTR), a leading international provider of professional services to clients in the global insurance market, announces that it has acquired the business and assets of KnowledgeCenter (the "Acquisition") from KnowledgeCenter Ltd. KnowledgeCenter is an established provider of tailored business solutions to the insurance industry based on its market-leading business process management and document management software applications.

KnowledgeCenter provides technical assistance at all levels of a project's lifecycle from initial project definition, through consultancy/analysis and design, solution development, implementation and product or solution training. It will become part of Charles Taylor Insurance Support Services, which provides professional support services to clients in the Lloyd's, London and international (re)insurance markets. The acquired business will, under the ownership of Charles Taylor, trade as Charles Taylor KnowledgeCenter Limited.

Established in 2001, KnowledgeCenter generated £2.7m revenues in the year to March 2013 with major London market clients. The Acquisition is in line with Charles Taylor's strategy to deliver growth in its core Professional Services businesses. It provides the Group with a competitive advantage on key technology products and processes which it can combine with its own service provision. In addition, KnowledgeCenter has well-established client relationships with leading managing agents and insurers in the Lloyd's and London insurance markets which will complement those of the Group. Kevin Osborn, a founder and managing director of KnowledgeCenter and the other directors of the business will be instrumental in driving the business forward under Charles Taylor's ownership.

The initial consideration for 100% of the business is £1.9m, equivalent to 4.9x the 2013 adjusted EBIT. The profit before tax on an adjusted basis was £0.38m for the fiscal year ended March 2013 and the gross operating assets at the same date were £0.8m. The sellers are entitled over a period of five years to four annual earn out payments of up to £0.7m p.a. and a final earn out payment of up to £2.4m subject to challenging annual profit growth thresholds being met. The maximum purchase price subject to achievement of all thresholds over the earn-out period is £7.1m. The initial consideration will be paid in a combination of cash and retention of KnowledgeCenter receivables. The earn-outs can be paid in shares or cash at the discretion of Charles Taylor. The transaction will be effected as an asset deal, and is expected to be modestly earnings enhancing.

David Marock, Group Chief Executive Officer, Charles Taylor plc said:

"KnowledgeCenter is an excellent strategic fit with our Insurance Support Services business. The Acquisition allows us to enhance our existing technology platform with KnowledgeCenter's highly regarded knowledge management and workflow products and tailored insurance solutions. Effective technology solutions, delivered by experienced insurance professionals, are essential for clients in the Lloyd's, London and international (re)insurance markets. We believe that combining KnowledgeCenter's products and processes with our highly regarded range of insurance support services will enable us to further develop our existing customer relationships and give us an important competitive edge."

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About Charles Taylor plc

· Charles Taylor plc is a leading international provider of professional services to clients in the global insurance market. The Group has been providing professional services to insurance clients since 1885 and today has around 1,000 staff in 50 offices spread across 25 countries in the UK, the Americas, Asia Pacific, Europe and the Middle East.

· The Group offers services across the whole insurance market, principally on a fee-based model and operates through three professional services businesses - Management, Adjusting and Insurance Support Services. Charles Taylor also owns insurers in run-off.

· Charles Taylor's vision is to become the professional services provider of choice to the insurance market.

Further information is available at www.ctplc.com

Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect the Group's current expectations concerning future events and actual results may differ materially from current expectations or historical results.