Business
Acquisition
Acquisition.
About this update from Arcontech Group Plc
[{"type":"text","content":"\n Knowledge Technology Solutions PLC\n07 August 2007\n\n\nEmbargoed RNS Release 7 August 2007\n\n\n Knowledge Technology Solutions Plc ('KTS', 'the Company', 'the Group')\n\n Acquisition of Arcontech Limited ('Arcontech')\n\nKTS, a provider of professional market information services in the finance\nsector, announces that it has exchanged a conditional contract for the\nacquisition of the entire issued share capital of Arcontech Limited for a\nmaximum consideration of approximately £1.5 million.\n\nThe acquisition of Arcontech is in line with KTS' stated strategy to complement\norganic growth with selective acquisitions. It will provide KTS with a product\nset which is entirely complementary to its existing display application\ntechnology and the combined group will benefit from a substantially enlarged\ncustomer base.\n\nThe initial consideration will be satisfied with net cash of £700,000 and the\nissue of 45 million ordinary shares in KTS. In addition, deferred consideration\ncapped at £300,000 is payable in cash or shares if Arcontech achieves turnover\nover £1.2 million and up to £2.2 million in the 12 month period immediately\nfollowing the completion of the acquisition.\n\nCompletion of the acquisition is conditional on the Company completing an EIS/\nVCT qualifying placing of new ordinary shares, the proceeds of which will enable\nthe Company to provide working capital for the enlarged group.\n\nArcontech is an award winning specialist software company, founded in 1979,\nspecialising in middleware solutions for real time publishing, distribution and\naggregation of financial data, which can be integrated into any software\nplatform. It has strong and contractual relationships with a broad base of blue\nchip customers including major investment banks, data vendors and leading spread\nbetting and Contracts For Difference (CFD) brokerages. In its last audited\naccounts to 31 July 2006 Arcontech generated profits before tax of approximately\n£181,000 on turnover of £982,000 and as at 31 July 2006 it had net assets of\n£114,000.\n\nIt is intended that Arcontech will be fully integrated into KTS' London offices,\nwhich will provide some annualised cost savings. Mr Andrew Miller, who is\ncurrently a director of Arcontech, will join the board of directors of KTS on\ncompletion as an Executive Director.\n\nKTS Chief Exec...