17th Aug 2007 07:03
Harvey Nash Group PLC17 August 2007 HARVEY NASH GROUP PLC("Harvey Nash" or the "Company") Acquisition of Irish Recruitment and Outsourcing Business Harvey Nash is pleased to announce that it has acquired Rescon IT ("Rescon")from Ms. N. Butler and Mr. B. McSharry. Rescon is one of Ireland's leading ITrecruitment and solutions businesses, based in Dublin, specialising intechnology professionals and outsourcing solutions to blue chip Fortune 500clients as well as public sector organisations. The acquisition launches Harvey Nash into the Irish market, further extendingits European network. With a major emphasis on the telecommunications,technology, financial services and the public sectors, its client profile andservices are highly complementary with Harvey Nash's operations. It alsobenefits from above average levels of repeat business from key clients. The Rescon management team and majority vendor will remain in the business. Inthe year ended 31 December 2006, Rescon reported an audited profit beforetaxation of €0.8 million on turnover of €7.2 million and as at 31 December 2006had gross assets of €2.8 million. The acquisition will be immediately earningsenhancing. Total consideration of approximately €7.7million will be made up of: initial consideration of approximately €3.7 million in cash (subject to aworking capital adjustment); contingent consideration of approximately €4.0 million in shares in Harvey Nash,subject to Rescon achieving certain demanding profit targets for each of thethree years ending 31 July 2008 to 31 July 2010. If these demanding thresholdsare exceeded, up to €2.3 million additional contingent consideration in HarveyNash shares may become due. If Rescon achieves and exceeds the demanding profit targets, the maximumconsideration is capped at €10 million. The Group's balance sheet has been considerably strengthened through improvedtrading cashflows and therefore the consideration will be funded from availablecash resources and existing facilities as appropriate. Commenting on the acquisition, Harvey Nash Chief Executive, Albert Ellis, said: "We are delighted with this strategically important acquisition in what is athriving and relatively undeveloped IT solutions market. Rescon is a wellestablished business with a leading brand, excellent long term clientrelationships and a reputation for quality. It therefore provides an excellentstrategic fit with the Group. "The acquisition significantly strengthens our existing European IT recruitmentand outsourcing business and provides an excellent platform for introducing theGroup's offshore software development and Executive Search services into theIrish market." 17 August 2007 Note: A conference call for analysts will take place at 08.00 UK time thismorning. In order to participate, please dial 01452 542 300 and ask to beconnected to the Harvey Nash conference call. ENQUIRIES: Harvey Nash Tel: 020 7333 0033Albert Ellis, Chief ExecutiveRichard Ashcroft, Finance Director College Hill Tel: 020 7457 2020Mark GarrawayMatthew Gregorowski Notes to Editors: Harvey Nash, a global professional recruitment consultancy and IT outsourcingservice provider, is committed to delivering the very best talent and ITsolutions to a broad base of clients. Its 3,500 staff and associates, operating from 31 offices covering the USA,Europe and Asia, work to the highest levels of integrity, professionalism andquality in providing its unique portfolio of services: executive search, interimmanagement, IT and finance recruitment and IT outsourcing. For more information please visit www.harveynash.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Harvey Nash Group