19th Sep 2005 07:00
Net b2b2 PLC19 September 2005 NETB2B2 MAKES NEW ACQUISITION Netb2b2 plc ("Netb2b2" or "the Company"), the AIM-quoted business aggregatorfocussing on the digital communications sector, announces the acquisition of anew business, Fernhart New Media Limited ("Fernhart") for a total considerationof up to £2.5 million comprising: * initial consideration £125,000 in cash; * the issue of 706,880 new ordinary 10p shares ("Ordinary Shares") at a price of 53.05p per share, amounting to £375,000; and * deferred consideration comprising the allotment of Ordinary Shares of up to a value of £2 million depending on the performance of Fernhart in each of the three years ending 30 June 2008. Application will be made for the new Ordinary Shares to be admitted to tradingon AIM which is expected to take place on 22 September 2005. Fernhart is a Croydon based consultancy that designs, builds and maintains websites and interactive television ("DiTV") services for businesses. The companywas established in 1997 by Daren Forsyth and specialises in a number of sectorsincluding broadcast media, financial services, gaming, insurance, property,public service and institutions. Its experienced DiTV business has deliveredfull transactional systems, complete user interfaces and consultancy servicesfor a number of high profile clients. Companies which Fernhart has suppliedservices to include: BBC, ITV plc, BSKYB plc, BACC, Sporting Index, RoyalInstitution of Chartered Surveyors, Royal Yacht Association, AtlasInternational, PR Shots and Iberian International. Fernhart also holds licences for a range of betting games that it is developingfor the burgeoning gambling sector and plans to develop these games for both Weband Interactive TV. The company is in advanced negotiations with a number ofmajor betting brands. For the twelve months ended 30 June 2005, Fernhart had revenues of £652,000 andan operating profit before interest and tax of £11,000. As at 30 June 2005,Fernhart's net assets were £32,000. Mr Forsyth and the current senior managers will continue to manage Fernhart onan ongoing basis and report to the board of Netb2b2. Daren Forsyth, Managing Director of Fernhart commented: "Fernhart has been a pioneer since 1997 in the delivery of internet andinteractive services. Now the company is positioned as one of a very select few that can developenhanced DiTV applications for any broadcaster in the world. Consequently we arepresented with many growth opportunities that we are having to pick and choosefrom. To fuel our growth and to inject momentum we decided, after 8 years ofindependence, to select a company that could help us deliver on our potentialand Netb2b2 is a good fit. We have monitored the performance of past Netb2b2 acquisitions and have seenthem go from strength to strength. It is now the turn of Fernhart to flourishwith the support of Netb2b2 management." Keith Young, Chairman of Netb2b2 added: "We believe that this acquisition addsan exciting new element to our group of companies. The government announced, on15 September 2005, the timetable for switch over from analogue to digitaltelevision by 2012 and we feel that DiTV is an area of growth. Daren Forsythand the team have established Fernhart as one of the market leaders in DiTV. Welook forward to the further development of Fernhart in its market and the chanceto explore opportunities to leverage the business throughout our existinggroup." For further information, please visit www.netb2b2.com or contact: Keith Young / Geoffrey Griggs John West / Claire MellyNetb2b2 plc Tavistock CommunicationsTel 020 7878 1008 Tel 020 7920 3150 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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