19th Jul 2006 10:13
Redstone PLC19 July 2006 19 July 2006 REDSTONE PLC Announces the acquisition of the Tolerant Group of Companies. Addition of UK network security solutions provider significantly bolsters business capabilities Redstone plc ("Redstone"), the national provider of communications and ITsolutions, announces today, that it has completed the acquisition of TolerantSystems Ltd, Net-Adept Limited, Net Quest Solutions Limited and Trent DatacommsLimited (together the "Tolerant Group of Companies"), some of the UK's leadingproviders of Network Security Solutions. Tolerant is a Network Management, Monitoring, Analysis and Security Provider andhas the exclusive rights to sell Computer Associates' anti-virus andanti-spyware products to larger businesses in the UK. As such, it enablesRedstone to offer an additional range of highly valued services to its customersin partnership with one of the world's largest IT management software providers.The Tolerant Group of Companies will be integrated into Redstone ManagedSolutions, an operating division of Redstone plc and will greatly enhance thisdivision's market proposition. The Tolerant Group of Companies are based inStoke on Trent and have a total of 36 employees. Its unaudited results for the 12 months on a pro forma basis to May 2006 showedthat it achieved aggregate revenues of £5.5m and adjusted EBITDA of £0.7m. Totalgross consideration amounts to £3.75m constituting; £1.6m in cash, £0.8m of loannotes, with interest to be charged at 0.25 per cent (gross) above the publishedbase rate of Barclays Bank PLC ("Barclays"), and the balance to be satisfied bythe issue of 25,000,000 new ordinary shares of 1p each ("New Ordinary Shares").The cash consideration is to be funded from Redstone's existing facilities withBarclays. Application has been made for the New Ordinary Shares to be admitted to tradingon AIM and dealings are expected to commence on 24 July 2006. The Tolerant Group of Companies' management team will remain with the businessand report into Tariq Saied, MD Redstone Managed Solutions. The current majorshareholder and MD of Tolerant, Nick Tunstall, will remain with the business forup to six months to assist with a smooth integration with Redstone. Martin Balaam, CEO Redstone commented, "This is an excellent move for RedstoneManaged Solutions, not only does it add necessary scale to this business butTolerant also brings additional skills into the division. There are alsosignificant cross selling opportunities as Redstone looks to sell the NetworkSecurity products across the whole Redstone customer base. We welcome onboardthe Tolerant team and look forward to working with them. "This acquisition combined with the offer for Symphony Telecom Holdings plc,which was declared wholly unconditional yesterday, represents the initial stageof Redstone's stated strategy to become one of the leading IT and communicationssolution providers in the UK and Ireland. As such Redstone will continue to lookfor other earnings enhancing acquisitions in this rapidly consolidating marketplace." ENQUIRIES: Redstone plc Tel. +44 (0)845 200 2200Martin Balaam, Chief Executive OfficerTim Perks, Chief Financial Officer ICIS Limited Tel. +44 (0)20 7651 8688Tom Moriarty or +44 (0)7769 937 626 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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