Last checked at 27 Feb 2017 07:00
microgen
www.microgen.com 27 February 2017
ACQUISITION OF PRIMACY CORPORATION
Microgen plc ('Microgen') is pleased to announce the acquisition of Primacy Corporation ('Primacy') from the Kelly Family Trust for total cash consideration of CAD5.6 million (Canadian Dollars) (£3.4 million). Primacy is a Toronto-based provider of software to the Trust & Fund Administration market and will be integrated into the Microgen Financial Systems business.
Primacy is the fifth acquisition by Microgen since December 2014 and continues the Group's strategy of consolidation in the Trust & Fund Administration market, a global niche within the broader Wealth Management sector. These acquisitions provide Microgen with an increased client and recurring revenue base and complement the organic growth in Microgen 5Series revenues resulting in the Microgen Financial Systems business becoming increasingly focussed on Trust & Fund Administration.
Primacy's revenue in the year ending 31 October 2016 was CAD2.0 million (£1.2 million) with profit before tax of CAD0.9 million (£0.6 million). The gross assets at 31 October 2016 were CAD1.2 million (£0.7 million) and it is anticipated that at completion there will be cash and net funds of approximately CAD0.2 million (£0.1 million). The acquisition of Primacy is anticipated to be earnings enhancing in the current financial year and is funded through Microgen's existing cash resources.
As previously announced, Microgen expects to announce its preliminary results for the year ending 31 December 2016 on 8 March 2017.
Contacts
Philip Wood, Chief Financial Officer 020-7496-8100
James Melville-Ross / Darius Alexander 020-3727-1000
FTI Consulting