Last checked at 8 Jun 2023 07:35
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF EU REGULATION 596/2014 AS IT FORMS PART OF DOMESTIC LAW IN THE UNITED KINGDOM BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.
8 June 2023
AdvancedAdvT Limited
Acquisitions for £33 million
Suspension of Listing
AdvancedAdvT Limited (LSE: ADVT, the "Company") has conditionally agreed to acquire the entire issued and outstanding share capital of five software businesses (the "Acquisitions") from Capita plc for a combined enterprise value of approximately £33 million in cash.
In addition to organic growth, the Acquisitions will create a platform to develop the Company by exploring growth opportunities in synergistic sectors and by targeted investment and M&A activities.
In the year ended 31 December 2022, the Acquisitions generated a total revenue of approximately £35 million, with approximately 74% of the revenue being recurring or from Software-as-a-Service (SaaS).
The transaction will be funded by the Company's cash reserves.
The acquired businesses include:
· CIBS - Financial and Business Solutions for public and private sectors
· CHKS and Synaptic - Governance Risk and Compliance (GRC) for the Healthcare and Financial Services sectors
· Retain/WFM - Global Professional Services and Workforce Automation Software for Private and Public Sectors
The Acquisitions are subject to and conditional upon National Security and Investment Act approval.
Vin Murria, Chairperson, commented:
"We are delighted to start our next journey with the great teams from across these businesses and look forward to working with them.
"As has been our model in previous vehicles, ADVT will support the teams in delivering strong new organic growth - both in existing sectors as well as new areas including data, analytics, managed service and digital transformation opportunities. Equally, we are excited to drive new opportunities and with a substantial war chest, the business is well placed to execute M&A that is both synergistic and accretive over the longer term."
Share suspension
The Acquisitions, if completed, would constitute a reverse takeover under the Listing Rules and accordingly the Company would need to apply for re-admission of its shares to the Official List. As the Company is currently unable to provide full disclosure under Listing Rule 5.6.15, at the request of the Company the Financial Conduct Authority has suspended the Company's listing in its shares on the standard segment of the Official List and trading from the London Stock Exchange with immediate effect, pending the publication of a prospectus providing further detail on CIBS, CHKS, Synaptic and Retain/WFM and the Company as enlarged by the Acquisitions.
In the event the Acquisitions do not proceed the Company will seek the lifting of its suspension from the standard segment of the Official List and trading on the London Stock Exchange.
There can be no certainty that the Acquisitions will take place. Further announcements and updates will be made in due course.
Enquiries:
AdvancedAdvT Limited | |
Vin Murria | c/o Meare Consulting |
Meare Consulting | |
Adrian Duffield | Tel: 07990 858548 |
Singer Capital Markets (Broker) | Tel: 020 7496 3000 |
Phil Davies | |
George Tzimas | |
KK Advisory (Investor Relations) | Tel: 020 7039 1901 |
Kam Bansil |
Further information on the Company can be found on its website at www.advancedadvt.com. Neither the content of the Company's website, nor the content on any website accessible from hyperlinks on its website or any other website, is incorporated into, or forms part of, this announcement nor, unless previously published by means of a recognised information service, should any such content be relied upon in reaching a decision as to whether or not to acquire, continue to hold, or dispose of, securities in the Company.