IS Solutions PLC
5 April 2000
I S Solutions plc (the 'Company')
Acquisition of AXL Business Solutions Limited and AXL Performance Solutions
Limited
The Company announces that it has today entered into an agreement to acquire
the issued share capitals of AXL Business Solutions Limited and AXL
Performance Solutions Limited (together 'AXL') for a total consideration of
£2.28million. Of the consideration £1.9 million is to be satisfied in cash and
the balance by the issue of 40,000 ordinary shares in the Company. The vendor
has agreed not to dispose of any of the consideration shares until the
announcement of the Company's results for the year ending 31 December 2000 and
certain other restrictions thereafter.
The Company has also announced today a placing of 147,369 new ordinary shares
at 950p per share to raise £1.4 million gross of expenses. The cash
consideration payable for the acquisitions will be partially funded from the
net proceeds of the placing with the balance from the Company's cash
resources. Application has today been made for the consideration shares and
the new ordinary shares to be issued under the placing to be admitted to
trading on Aim. It is anticipated that trading in these shares will commence
on 10 April 2000.
AXL is a solutions provider based in Tunbridge Wells specialising in the
financial sector undertaking work related to financial information feeds,
software authoring, web architecture and facilities management for a client
list comprising principally large corporates. The AXL businesses for the year
ended 30 April 1999 had turnover of £1.86 million and an operating profit of
£142,800 after certain director and shareholder related costs and
non-recurring items. Net assets at completion are expected to be approximately
£0.3 million.
John Lythall, Managing Director of I S Solutions, commented:
'AXL has developed in a similar way to I S Solutions with a mix of project
work and recurring revenues from major corporate clients. In addition, it
offers an opportunity to develop a product based revenue stream from certain
of the financial software solutions that it has developed'.
Enquiries:
John Lythall, Managing Director
Peter Kear, Sales & Marketing Director Fiona Tooley, Director
I S Solutions Plc Citigate Dewe Rogerson
web-site: www.issolutions.co.uk
Tel: 0171-282 8000 Tel: 0171-282 8000
Mobile: 07768 640215 (JL) Mobile: 07785 703523
Thereafter: 01932 893333 Thereafter: 0121-631 2299