7th Nov 2006 10:49
KBC Advanced Technologies plc07 November 2006 7 November 2006 KBC Advanced Technologies plc ("KBC") Acquisition of Veritech Inc KBC Advanced Technologies plc, a leading consulting and technology group to theoil, petrochemical and other process industries, today announces the acquisitionof Veritech Inc ("Veritech"), a leading US energy consultant, for an aggregateconsideration of US$1.7 million (the "Acquisition"). The initial considerationis $200,000 in cash together with the issue of $500,000 in new KBC Ordinaryshares to the vendors. The balance of the consideration will be made in fourannual payments of $250,000 each commencing in November 2007. Veritech is a private company that provides services and software in the area ofenergy optimisation and management for clients in the process industries.Veritech owns and licenses its own proprietary simulation and monitoringsoftware - Persimmon(TM) and ESteam(TM). The company is based in Sterling, Virginia. The unaudited gross assets attributable to Veritech are US$0.4 million at the date of transfer. For the year ended 31 December 2005, reported turnover for Veritech was US$1.3 million and profit before tax US$0.2 million. As a result of significant sales success during 2006 the KBC Board anticipates that revenues will be materially higher for the year ended 31 December 2006. The Acquisition is expected to enhance KBC's earnings in the first full year of ownership. Through KBC's acquisition of the Linnhoff March group in 2002, KBC's energyoptimisation services business has been very successful in Europe, the MiddleEast and Asia. Veritech's track record in the Americas will both complement andenhance KBC's coverage of this important sector of our market. Veritech itselfwas until the early 1990s a part of the former Linnhoff March group andtherefore uses methodology and tools common to those used by KBC's consultants. The existing shareholders of Veritech are Michael A Rutkowski, Andrew SMcMullan, and Bruce L Pretty. On completion of the Acquisition all three willbecome employees of the KBC Group and their shareholdings in KBC are subject tolock ups for a minimum period of one year. The US$500,000 of new Ordinary shares in KBC will be calculated by reference tothe average closing price of the shares of KBC on the 20 dealing days prior tocompletion. Application will be made for admission to trading on AIM of the newOrdinary shares issued to the vendors. The deferred consideration is expected tobe funded out of the future cash flows of KBC. Commenting on the Acquisition, KBC's Chief Executive, George Bright, said "Theacquisition of Veritech will help KBC build a larger American footprint in theimportant area of energy optimisation across the oil refining, petrochemical andother process industries. Rationalisation of tools and methodologies will bringsignificant benefits to the industry." - ends- For further information please contact: KBC Advanced Technologies plc 01932 236314George Bright, Chief ExecutiveNicholas Stone, Operations and Finance Director Arden Partners Limited 020 7398 1632Richard Day Weber Shandwick Square Mile 020 7067 0700Richard Hews / James Gilheany Notes to Editors: KBC Advanced Technologies plc, a leading independent consulting, processengineering and software group, delivers improved operating performance to theoil refining, petrochemical, and other process industries worldwide. We provideprocess consulting, strategic planning advice, organisational effectivenessservices, energy price forecasting and market analysis, economic studies,capital project services, and training to help clients achieve their businessobjectives and improve their competitive position. KBC analyses plant operationsand management systems and, our consultants recommend changes for material andmeasurable improvements in profitability. To assist clients in realising suchimprovements, KBC provides implementation services and software solutions,including KBC Profimatics(TM) models and Petro-SIM(TM) for process optimisation, andLinnhoff March energy optimisation software packages. Formed in 1979, KBC hasoffices in the UK, USA, Canada, Singapore, the Netherlands, Russia, China, andJapan. For more information, visit www.kbcat.com. Persimmon and ESteam are trade marks of Veritech Inc. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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