2nd Jun 2006 07:01
Alternative Networks plc02 June 2006 Alternative Networks plc Conclusion of earn-out arrangements on ICB acquisition Alternative Networks ("the Company"), one of the UK's leading independentbusiness to business telecoms providers, announces the early conclusion ofearn-out arrangements regarding its acquisition of Integrated Communications forBusiness ("ICB") on 10 October 2005. The conclusion of the earn-out agreed todayreduces the total deal consideration to £6.2 million, from a previous maximumtotal amount of £11 million. Furthermore, the deal will accelerate the fullintegration of ICB. The ICB business continues to trade in line with expectations, and will resultin a significantly higher return on Alternative Networks' investment. The accelerated integration, which specifically involves integrating themanagement of the telesales, sales and client management teams into AlternativeNetworks, also includes the immediate departure of the two founding directors ofICB and is expected to generate an additional £0.3m of annualised cost savingsover and above those previously announced. Alternative Networks has reached an agreement with the selling shareholders ofICB, under which it will pay £160,000 in cash to complete the earn-outs with nofurther deferred consideration payable. This agreement has been concluded withselling shareholders holding 99.7% of the original ICB shares. The previousearn-out arrangements were for a total of up to £5 million, of which £3 millionwas in cash and £2 million was in Alternative Networks shares, payable in twoperiods ending 31 December 2007. As a result of the conclusion of the earn-out,there is expected to be no issue of shares and there will be a correspondinguplift to forecast fully diluted earnings per share. James Murray, Chief Executive of Alternative Networks, said: "This has helped clarify what we always believed was a very good deal forAlternative. ICB was our largest acquisition to date and is making anencouraging contribution to our business in terms of sales reach, turnover andprofit generation. We are pleased to have come to an agreement less than sevenmonths after completion with the selling shareholders and the two founderdirectors of ICB, which both enables them to pursue other business interests andenables us to accelerate the integration process. The reduced earn-out payments,combined with the earlier than planned full integration, are clearly verypositive for Alternative moving forward." Further details on the integration of ICB and the strategy for AlternativeNetworks in a converging business telecoms market moving forward will be givenwith the interim results on 12 June 2006. June 2nd 2006 Enquiries: Alternative Networks plc 0870 190 7056 James Murray, Chief Executive Officer Edward Spurrier, Chief Financial Officer College Hill 020 7457 2020 Carl Franklin / Corinna Dorward This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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