5th Nov 2007 07:01
Harvey Nash Group PLC05 November 2007 HARVEY NASH GROUP PLC(the "Group") Harvey Nash USA and TechDiscovery Expand Strategic Alliance The Harvey Nash Group ("Harvey Nash") announces that it has taken an equitystake in TechDiscovery LLP ("TechDiscovery") which expands and formalises thesuccessful existing strategic partnership. The two organisations have workedtogether closely since 2006 and have forged a mutually beneficial strategicalliance providing joint IT Solutions and Consulting to shared clients acrossthe USA. TechDiscovery specialises in business-focused IT solutions, includingdevelopment, deployment, integration and maintenance of applications for Fortune500 companies with whom the organisation has developed very strongrelationships. The merged partnership will extend a full range of IT technology solutions toclients, building on the Harvey Nash capability in both onshore and offshoresoftware development and business process outsourcing. They are already workingtogether to provide fully outsourced application management and technologyconsulting services. Under the expanded strategic alliance, Harvey Nash will acquire 49.9% (on afully diluted basis) of TechDiscovery LLP and under the agreement acquires anoption to purchase the remaining 50.1% within the following 3 years at theGroup's sole discretion. The initial consideration of £0.7million will bepayable in cash with an anticipated deferred element of £1.0 million in cash orshares at Harvey Nash's discretion, subject to certain performance criteriabeing achieved in the 12 months to 30 September 2008. This equity purchase iscapped at £2.5 million. In the year ended 30 September 2007 TechDiscovery's un-audited revenues were£3.3 million with a net income of £0.3 million. As at 30 September 2007 TechDiscovery had net assets of £0.2 million. In the event that Harvey Nashexercises its option to purchase the remaining 50.1%, consideration will bepayable based on increased profit targets over a further 2 year period.Consideration will be by way of cash or shares at Harvey Nash's discretion andthe maximum consideration in the event the option is exercised is capped at £4.2million. Albert Ellis CEO of Harvey Nash said: "I am delighted we have been in a position to take our IT Solutions partnershipto the next level. CIO's are saying that, in the future, delivering IT willdemand an increasingly creative and strategic approach, unlike the traditionalstaffing model adopted by the industry. We firmly believe this expandedrelationship will provide a unique package of IT Solutions expertise for ourclients and ultimately enable the development of their competitive advantage." 5 November 2007 Note: A conference call for analysts will take place at 08.00 UK time thismorning. In order to participate, please dial +44 (20) 0800 694 0257 and ask tobe connected 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 33 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 andleadership services, interim management, IT recruitment and IT outsourcing andoffshoring. For more information please visit www.harveynash.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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