Business
Acquisition
Acquisition.
About this update from Vianet Group Plc
[{"type":"text","content":"\n \nRNS Number : 6213S Vianet Group PLC 04 October 2017 \n\n\n\n\n\n \n\n\n4 October 2017\n\n\n\n\n \nVianet Group plc\n(\"Vianet\" or the \"Group\")\n \nAcquisition of the UK's leading Unattended Retail Management Software Company\nEarnings enhancing strategic acquisition in the unattended retail market\n \nVianet Group plc (AIM: VNET), the international provider of actionable data and business insight through devices connected to its Internet of Things (\"IOT\") platform, is pleased to announce the acquisition of Vendman Systems Ltd (\"Vendman\"), a leading Enterprise Resource Planning (\"ERP\") and mobile software provider for unattended retailing, for a total consideration (including an earn out), of up to £4.25 million, payable in cash.\n \nVendman, which is based in Hazel Grove, Cheshire, develops, manages, and supports integrated software and mobile applications for the unattended retailing industry. Its solutions include stock control, pricing information, data management, account analysis and route planning. Vendman is UK market leader and provides management services for over 200,000 machines in the UK and European unattended retail markets and has a track record of growth. Unaudited accounts for the 12 months ended 31 March 2017 recorded revenues of £1.8 million, over 90% of which were recurring, and an operating profit of £0.27 million with net assets of £0.28 million.\n \nThe initial cash consideration payable for Vendman is £2 million (subject to customary completion adjustments), on completion, with an earn-out element of up to £2.25 million based on the achievement of EBIT targets in the first two years. The initial £2 million of consideration is to be funded by a bank loan with a current blended rate of c. 3% and it is envisaged that the earn-out will be funded from cash reserves.\n \nVendman is a highly complementary fit with Vianet's existing business and has successf...