BDI.L Regulatory News (BDI)

19 Dec 2006 12:07

Bond International Software PLC19 December 2006 FOR IMMEDIATE RELEASE 19 December 2006 Bond International Software plc ("Bond" or "the Company") £8.9 million Acquisition of Gowi Group Bond International Software plc ("Bond"), the world's leading supplier ofspecialist recruitment software solutions, today announces the acquisition ofthe entire issued share capital of Gowi Group plc ("Gowi") for a totalconsideration of £8.9m. Gowi is a privately owned company that specialises in the development and supplyof software and services into human resources, payroll and recruitmentdepartments, primarily in the public, education and publishing sectors. Established in 2001, Gowi has principally grown through targeted acquisitionswith the last two occurring in December 2005 and April 2006. The group nowemploys approximately 120 employees in five locations around the UK and has acustomer base of more than 850 companies. For the year end 31 March 2006, Gowireported a turnover of £4.6m and a pre-tax profit of £205,000 with net assets ofGowi at 31 March 2006 reported as £1.73m. Since their last published accountsGowi has made a further acquisition of a company called Rutherford Webb Limitedfor a total consideration of £3.5m. For the year ended 31 October 2005Rutherford Webb Limited reported a turnover of £2.3m, an operating profit of£90,000 and gross assets at 31 October 2005 of £0.47m. The current seniormanagement of Gowi are being retained to run the business. Following the acquisition the annual turnover of Gowi is expected to be around£9m with an annual operating profit of £1.4m. The consolidated net assets ofGowi at the date of completion will be around £3m. The £8.9m total consideration comprises £5.2m in cash, to be satisfied fromexisting cash resources and £3.7m by way of the issue of Bond ordinary shareswhich will be subject to a lock in of twelve months from the date of allotmentand an orderly market arrangement for a further twelve months. This is Bond's largest acquisition to date. The purchase of Gowi fits perfectlywith Bond's strategy of buying businesses in similar and related industries.Gowi's innovative approach and products will complement Bond's own range andprovide the best software and support services for the global human capitalmanagement sector. The Directors expect the acquisition to be earnings enhancing in the year ending31 December 2007 and thereafter. Commenting on the deal, Steve Russell, CEO of Bond said:"We have previously stated that our strategy is to increase our presence in thewider Human Capital Management arena. Gowi has a significant presence in the HRsoftware market and our combined product ranges will significantly improve thescope and capabilities of the portfolio that we can offer our customers aroundthe world. In particular, with the Gowi payroll products, Bond will now be ableto offer a totally integrated front to back office solution." Mike Smart, group CEO of Gowi added:"The merger with Bond will enable Gowi to accelerate our growth plans. Throughtheir international network, we can offer customers the advantages of sharedskills in product development, process mapping and customer support." - E N D S - For further information, please contact: Buchanan Communications: Tel: 020 7466 5000Tim Thompson / Nicola Cronk / Robin Haddrill Note to editors:Bond International Software is the world's premier provider of staffing softwareto recruitment consultancies and corporations. It has over 30 years experiencein the development and creation of products and services that have becomeindustry standards. Headquartered in the United Kingdom, the group also hasoffices in the United States, Australasia and South Africa with a global team ofover 200 employees. www.bond-adapt.com This information is provided by RNS The company news service from the London Stock Exchange