Business
Proposed Acquisition of Time Care AB and Propos...
Proposed Acquisition of Time Care AB and Propos....
About this update from Atlantic Lithium Limited.
[{"type":"text","content":"\n \n\n27 November 2009\n\n ALLOCATE SOFTWARE PLC\n (\"Allocate\" or \"the Company\")\n\n Proposed acquisition of Time Care AB and\n Proposed placing to raise £8.3 million\n\nThe Board of Allocate (the \"Board\") announces that it has agreed the terms of a proposed acquisition (the\n\"Acquisition\") by the Company of Time Care AB (\"Time Care\"), a Swedish-based provider of workforce management\nsoftware, with a strong focus on the healthcare market. The Acquisition of Time Care will provide Allocate\nwith a strong geographic footprint in the Nordic region, particularly in Sweden, where Time Care has customer\nrelationships with some 57 hospitals and 110 of Sweden's 290 municipalities. The Acquisition of Time Care is\ncurrently expected by the Directors to be significantly earnings enhancing in the first full financial year of\nownership by Allocate.\n\nAllocate also today announces a placing of 15,100,000 new ordinary shares (\"New Shares\") at 55.0 pence per New\nShare (the \"Placing Price\") to raise approximately £8.3 million (approximately £8.0 million net of expenses) to\nhelp fund the Acquisition (the \"Placing\"). The Placing has been fully underwritten by Numis Securities Limited\n(\"Numis\"), subject to certain conditions set out in the placing agreement.\n\nThe acquisition agreement provides for the purchase of the entire issued and to be issued share capital of Time\nCare from the vendors for a gross consideration of SEK 142.3 million (approximately £12.4 million)1. As at the\ndate of this announcement, vendors representing approximately 86.4 per cent. of the issued and to be issued\nshare capital of Time Care had signed the acquisition agreement. It is anticipated that the remaining vendors\nwill sign up to the acquisition agreement prior to the completion of the Acquisition. Time Care had net cash\nbalances of approximately SEK 48.4 million as at 31 October 2009, of which the Board has estimated that\napproximately SEK 42.3 million represents profits generated from financial periods prior to 31 October 2009\n(\"Excess Cash\") and approximately SEK 6.1 million is required for working capital purposes or represents\ndeferred income of Time Care as at that date. Accordingly, the net consideration (\"Net Consideration\") for the\nAcquisition is SEK 100 million (approximately £8.7 million1), which is being funded predom...