Business
Acquisition of MacLellan IT Ltd
Acquisition of MacLellan IT Ltd.
About this update from Cloudcoco Group Plc
[{"type":"text","content":"\n \nRNS Number : 4434L Pinnacle Telecom Group PLC 01 August 2011 \n \n\n1 August 2011\n \nPinnacle Telecom Group plc (\"the Company\")\n \nAcquisition of the business and assets of MacLellan IT Ltd\n \nPinnacle Telecom Group plc, the provider of cloud based technology solutions, is pleased to announce it has acquired the business and assets of MacLellan IT Ltd (\"MacLellan\"), a provider of IT solutions to the SME and mid-market, through its subsidiary Pinnacle Cloud Solutions Ltd (\"Pinnacle\").\n \nSummary\n \nÝ Acquisition of MacLellan IT Ltd for a total consideration of £1,060,465.\n \nÝ Consideration satisfied in shares at 0.57p per share - a premium of 58%.\n \nÝ The acquisition is expected to be earnings enhancing from the outset.\n \nÝ The acquisition of MacLellan forms a key part of Pinnacle's strategy by escalating its in-house IT capability as it continues to build out its cloud services proposition.\n \nÝ MacLellan's customer base complements that of Pinnacle and further strengthens its presence in the Scottish SME market.\n \nÝ Strong cross-selling opportunities exist across the combined businesses.\n \nÝ MacLellan's business has performed well in the last two years, despite the economic downturn, delivering unaudited retained profit in the full year to June 2011 of £240,065 (2010: £272,816).\n \nAcquisition detail\n \nThe acquisition of the business and assets of MacLellan was acquired for a total consideration of £1,060,465 satisfied by the issue of 186,041,228 shares at a price of 0.57p per share, which represents a premium of 58% when compared to the mid-market price of 0.36p per share at the close of business on 29th July 2011.\n \nThe acquisition is conditional only upon the admission of the shares to AIM, which is expected to take place tomorrow, 2nd August 2011. Following admission, the sellers will have a notifiable interest in 186,041,228 shares representing 9.06% of the issued share capital of the Company. The sellers are unable to dispose of any shares, subject to certain exceptions, until a 20 month period has elapsed after completion.\n \nBelow are the unaudited annual results of MacLellan, which are prepared under UK GAAP.\nFigures for the year ended 30th June 2011 are taken from the 2011 unaudited management accounts. \...