Interquest Acquires ECOM For GBP7.0M; Trading In Line With Expectations

LONDON (Alliance News) - Interquest Group PLC said Wednesday that it had acquired digital technology recruitment business ECOM Recruitment Limited for GBP7.0 million, while saying its own business was trading well in the UK.

Interquest said that ECOM's co-founder Tim Fleetwood will remain with the business as its managing director. It will pay for the acquisition with GBP3.0 million in cash and GBP0.5 million via the issue of 558,659 new shares. A further GBP2.2 million will be payable via a loan note with a 3% coupon, of which GBP0.5 million is payable in May 2014 and GBP1.7 million in December 2014. .

Subject to ECOM achieving GBP1.3 million in earnings before interest and tax in the year to October 31, 2014, a further GBP1.3 million earn-out could be paid.

ECOM posted an adjusted EBIT of GBP850,000 in the year ended March 31, 2013.

Interquest is an IT recruitment company. The company said that it had seen trading in line with managements expectations so far in 2013, as an encouraging performance in the UK instilled confidence despite continued difficulties in its Singapore business.

"Our business in Singapore has continued to experience difficulties and its contribution was not what the board expected," InterQuest said.

Shares in Interquest were trading down 1.2% at 94.90 pence Wednesday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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